Fintech company Raseedi from Egypt purchases local mobile lending app Kashat.
In a significant move for the Egyptian fintech landscape, Egyptian startup Raseedi has announced the acquisition of Kashat and its subsidiary Pharos Microfinance. This merger aims to further scale financial inclusion in Egypt and beyond.
Founded in early 2020, Kashat, led by co-founder and CEO Karim Nour, has been making waves in the digital lending sector. The company, which raised $1.75 million in a bridge round in 2021, has been providing loans to underbanked users, with the loans disbursed directly to users' mobile wallets within minutes after completing a digital eKYC process.
Raseedi, on the other hand, initially started as a dialler app for cheaper calls but has since evolved into a fintech powerhouse. Ahmed Atalla, CEO of Raseedi, has expressed a desire to provide a fully rounded fintech solution of payments and lending to millions of underserved masses.
The combined entity will leverage Kashat's FRA (Financial Regulatory Authority) license to offer nano loans with 1-3 month tenures. This will enable Raseedi to provide loans of up to EGP 3,000 to underbanked users.
The merger will also see the integration of Pharos Microfinance's microfinance capabilities. The combined entity will become Egypt's only financial service provider to offer nanoloans at scale.
The companies aim to leverage their expertise in big data and artificial intelligence to create innovative financial services for underserved populations. They plan to use a behavior-based credit scoring algorithm, utilising data from over 1 million app users, to offer loans.
Despite the acquisition, neither Raseedi nor Kashat has disclosed any new funding raised as a result of the deal. Raseedi has raised a total of $1.25 million in disclosed funding, but no new funding has been disclosed for either company since the acquisition.
The combined entity intends to expand its digital financial services beyond Egypt into other markets across Africa and Asia, subject to securing relevant licenses and regulatory approvals.
This acquisition marks a significant step forward in the fintech sector, with the potential to bring financial services to millions of underserved individuals and SMEs. For more detailed information about Raseedi’s expansion strategy post-acquisition, consulting recent company press releases, official announcements, or specialized fintech news sources would be necessary.
- The merger of Raseedi and Kashat, with Pharos Microfinance's subsidiary, promises to revolutionize business and technology in Egypt by offering innovative financial services, leveraging big data and artificial intelligence, and aiming to reach millions of underbanked individuals.
- In the near future, the combined fintech entity plans to scale its financial services beyond Egypt, tapping into markets across Africa and Asia, thereby expanding its footprint in the global business and technology sectors.
