Back to the complete issue
Sunday, 3 April 2022

Fintech app Khazna raises USD 38 mn in series A funding

Local fintech startup Khazna has raised USD 38 mn in equity and debt in a series A funding round, according to a press release (pdf). The round was led by US-based Quona Capital and includes previously announced funding from Nclude — the new USD 85 mn fintech fund launched by state-owned banks Banque Misr, the National Bank of Egypt, and Banque du Caire and managed by the UAE’s Global Ventures.

Early backers doubled down on the company, one of the hottest fintech players in the market, with our friends at Accion Venture Lab and Algebra Ventures both writing tickets.

Also participating in the round: Austria’s Speedinvest, Saudi Arabia’s Khawarizmi Ventures, and AB Accelerator by Arab Bank, as well as Egypt’s, Disruptech and CVentures. The company’s debt financing will be provided by Lendable, while Arab Bank Egypt is acting as the security agent facilitating the transaction.

What does Khazna do? Khazna’s app caters to the 50% of Egyptians who use smartphones and lack access to formal financial services, offering them general purpose credit; buy now, pay later (BNPL); and bill payment services.

This comes as Khazna is eyeing expansions: Khazna could set up a SPAC in 2024, which could be listed either at home or abroad co-founder and CEO Omar Saleh said last week. The fintech player is considering acquiring three technology companies operating in the local market, as well as expanding abroad in one or two regional markets in the first quarter of 2023.

BACKGROUND: Khazna has raised USD 47 mn since it started in 2020 and has a leadership team that includes former executives from the World Remit, Valeo, Uber, CIB, Jumia, Match Group, and Arqaam Capital.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.