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A large part of Egypt’s population lacks access to the traditional -based banking, forcing many to rely on cash transactions and informal nding. RentA fintech startup established in 2019 is dealing with this problem by providing appropriate financial services for low-middle-income workers. The company provides pay progress, digital payment, and solutions such as microlyans to help employees and contractors access to the necessary financial services.
The rent recently earned $ 16 million for the Pre-Series B Fund, its total funding has brought more than $ 63 million. Investment will support its expansion plans for applying for a digital banking license in Egypt and expanding in Saudi Arabia.
This is when we put the fintech in 2022 covered Barely collected $ 38 million More than one and a half thousand customers covers the pre-series A product. Today, Khajana has increased its user base of more than 500,000 people; This number was targeted twice at the end of 2022, which is half, what Saleh shared that time.
The company focuses on the workers who earn three times less than the minimum wage in Egypt, providing their affordable financial equipment. About 100,000 users get their pay -based through rent, allowing the company to consolidate financial services such as loans and insurances to consolidate their pay -based accounts.
For the remaining 5 users, the rent provides the NDing service service, helping gig workers and pensioners accessing credit. CEO Omar Saleh explained that the company initially focuses on pay-roll-baked credit and pension nDing, which contributed to its break last month.
Co-founder and CEO Omar Saleh said in a call to TechCrunch, “What we have done for the last two and a half years was to focus on our main product, which offers credit and pension recipients and the insecure loans of gig workers,” “” This is ours. The most profitable and original product of the journey and it was very important to find it properly because it helped us hurt our profit. “
On the way to becoming a digital bank
Buy the rent bill payments, now pay, pay later, medical insurance and other services that provide your own product from a rental. However, embeddes in both salaries and NDING, it is strategically moving towards becoming a full-fledged digital bank for the lower Egyptian community.
However, one thing is missing: Unlike the traditional -based banks, Loans spend on Loans by spending not access to customer deposits like many Fintecs in Egypt. So far, the Dollar (USD) for funding for the NDING activities of the rent (USD) and Egyptian pound (EGP) depending on the Holsel Debt financing.
To reduce the cost of adoption of Orrows and to pay more affordable loans, the rent is now working to get a deposit license in Egypt. This license will allow the startup to receive a customer deposit, so that it reduces its funding costs.
“The biggest game change here is to get access to user deposits for us. We have a huge opportunity to capture the part of that market in such a way that will make our fund costs much more attractive than today and in the end, which will put us in a very different position, “he commented.
In July 2024, the rent is targeting in mid -2026 to protect the banking license from the central bank of Egypt, which set up its regulatory structure for digital banks.
However, with the start of the six -year -old Fintek, it is simultaneously setting up a spectacular place on Saudi Arabia, where there is a growing demand for consumer finance solution. BNPL is not like player Tab And TobFocusing on the short-term BNPL credit, the rent expects to separate the revenue-based wage access (EWA), salary-backed NDing, and pension-based credit credit products.
Extension plan, including a non-vigorous IPO
Another reason for giving priority to the rent is to connect its view with Egypt, Saleh Notes. Since there are about three million Egyptian residents in Saudi, the Egypt-Saudi remittance corridor is one of the largest in the world, presenting the opportunity to provide financial services to anger-sauna, combining credit-led offers with a resolving foreign exchange (FX).
Saleh also said that the capital markets of Saudi Arabia, beyond the size of the market and the product of the product, also said. Todaol is one of the liquid and retail-driven stock exchanges in the region, which has been launched in several IPOs for the past few years.
Because of that, Khajana plans to come from Saudi to 40-50% from Saudi in the next four years, making it eligible for public list on Tadaul. For investors in the early stages, those who have supported the company for four to five years, Saleh says that it provides a clear way for a high-value departure.
Of course, the rent will be funded for this expansion with the capital of the recently raised growth. However, for the past two years, this pre-series B round of macroeconomic challenges in Egypt has been in the hands of structuring.
Egypt currency was confronted between 2022 and 2023, and economic instability, which made funds more difficult for startups and initiatives. The overall recession of the deals flow reflects this, as investors took a cautious view on Egyptian startups. However, after the economic reforms and more flexible exchange rates in 2021, foreign direct investment (FDI) flowing in Egypt has made a major change in more than $ 50 billion. As a result, investors’ confidence returns to new interest from worldwide and regional investors.
As a result, global investors such as Coona and Speedinvest, as well as regional financial institutions and MSME, ANB CED Fund (run by ANB Capital), have welcomed new and existing investors, including Sanad Fund, Aljazira Capital (Investment Saudi Arabia (investment Saudi Arabia. Bank Al -Jazeera’s arm), Tibas Ventures (Venture Capital Arm in Ibank in Turkey), Khwarizmi Ventures, Enclude (Fintch Fund established by Egypt’s largest national bank) and ICU Venture.
