Egyptian startup Khazna, a financial super app that offers easy to use, technology-driven financial services to underserved consumers and micro-businesses, has raised a Series A round of US$38 million in equity and debt to ramp up its expansion efforts.
Launched in 2020, Khazna began life as an earned wage access product, but has since grown into a multi-product that caters to the 50 per cent of Egyptians who are active smartphone users yet lack access to formal financial services. It currently offers general purpose credit, buy now pay later (BNPL), and bill payment.
The company has now raised US$38 million in Series A funding to ramp up its efforts to replace informal cash-driven alternatives across Egypt. The round means Khazna has raised a total of US$47 million since its inception.
The equity investment was led by fintech-focused impact investor Quona Capital with the participation of Speedinvest, Nclude, Khawarizmi Ventures, Algebra Ventures, Accion Venture Lab, Disruptech, AB Accelerator by Arab Bank, and CVentures, among others. The company’s debt financing is provided by Lendable, while the Arab Bank Egypt is the security agent facilitating the transaction.
“The unprecedented evolution of Egypt’s nascent fintech industry is a testament to the significant efforts by the Central Bank of Egypt towards financial inclusion and a less-cash society. We are aligned with CBE’s vision and Khazna at its core believes that world-class financial services should be available to all. We are combining cutting-edge technology and relentless user obsession to build the best experience for our users,” said Omar Saleh, Khazna’s co-founder and CEO. “We continue to experience exponential growth in network effects created by our more than 150,000 active users, our partners, and Egypt’s largest merchants.”
Khazna represents Quona Capital’s second investment in Egypt, and Monica Brand Engel, the firm’s co-founder and managing partner, said the startup had scaled and monetised quickly to become a market leader in the push for financial inclusion for the 35 million underbanked in Egypt.
“Empowering consumers and micro-businesses with Khazna’s convenient, user-centric, and transparent financial super app can enable millions across Egypt to gain greater control over their financial lives. Quona is incredibly excited about Khazna’s roadmap to be the category-leading digital super app for inclusive finance in Egypt,” she said.
