Kashat, an Egypt-based FinTech and microloan solutions provider, has raised $1.75 million in its newest round of funding. The Bridge round was led by the Pan-African fund Launch Africa, whose purpose is to assist businesses that address the continent’s most pressing issues, and included several prominent regional investors, including previous backers Cairo Angels.
Kashat was founded in 2019 with the goal of improving financial inclusion in Egypt and the Arabic-speaking world as a whole by delivering accessible, smooth, and profitable financial services. Kashat delivers nano financial services in the form of small loans to Egypt’s unbanked and underbanked demographics through its user-friendly smartphone platform.
According to our latest August 2021 Venture Investment Dashboard, FinTech has had a spectacular year, with growth in both transaction volume and VC financing continuing to be steady. FinTech scored first in terms of transaction volume in MENA in August, with a 20 percent YoY increase in the number of transactions closed, outnumbering its predecessor E-Commerce by eight deals. FinTech businesses in MENA raised 41% of all funds in August, thanks to a brisk transaction flow and Tabby’s historic $50 million Series B investment from worldwide investors such as Global Founders Capital, STV, and Mubalada Ventures.
The FinTech landscape in Egypt, and the MENA area in general, is booming, with firms boosting the digital economy by providing frictionless financial solutions. While FinTech startups in Egypt such as PayMob and MoneyFellows focus on the greater Egyptian market, Kashat’s operations cater to a specific demographic as part of their objective to promote financial inclusion in Egypt. Kashat is getting into Egypt’s unbanked sector by providing microloans and nano-financial services to a market that accounts for more than 70% of the population.
The Egypt-based FinTech intends to use the fresh money to sustain and grow its platform, as well as extend its operations. “With the growth in customer purchasing power, increased financial inclusion, and democratized access to a broader array of goods and services, consumers across Egypt are desperate for a timely, efficient, digital-friendly, and affordable lending solution,” said Launch Africa Ventures Managing Partner Zachariah George in light of this recent investment. Kashat is taking big, brave steps toward this goal, and we’re delighted to be on board with them.”
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