Egyptian Startup Khazna Raises $38 Million Series A to Support Expansion
Khazna, an Egyptian financial super app offering technology-driven and easy to use financial services to underserved consumers and micro-businesses, has raised $38 million in a Series A round in equity and debt to foster expansion efforts.
In 2020, Khazna took its first step as an earned wage access product and has now transformed into a multinational product that offers services to 50 per cent of Egyptians who are smartphone users but lack access to formal financial services.
The company will use the proceeds to accelerate efforts to replace informal cash-driven alternatives across Egypt.
Quona Capital led the equity investment that saw participation from Speedinvest, Nclude, Khawarizmi Ventures, Algebra Ventures, Accion Venture Lab, Disruptech, AB Accelerator by Arab Bank, and CVentures. Lendable provided Khazna's debt financing, while the Arab Bank Egypt facilitated the transaction.
Omar Saleh, Khazna’s co-founder and CEO, said: "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 combine cutting-edge technology and relentless user obsession to build the best experience for our users. 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.”
Monica Brand Engel, the firm’s co-founder and managing partner, said: "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."