Cairo-based microloan solutions fintech, Kashat, has secured $1.75 million in a bridge round led by Pan-African fund, Launch Africa Ventures, with participation from a number of key regional investors and existing investor, The Cairo Angels. Kashat plans to use its new funds to further develop its platform and expand its operations.
Founded in 2019 by Sumair Farooqui and Karim Nour, Kashat has been working towards helping achieve financial inclusion across Egypt and the Arabic-speaking world through its mobile platform, offering nano financial services in the form of small loans for the unbanked and under-banked in Egypt.
For Launch Africa Ventures, Kashat’s effort feed into solving a wider issue across Africa and much of the Middle East, with fintech solutions poised to create fairer and more inclusive financial systems outside of what are now considered archaic formal systems.
“With the growth in customer purchasing power, increased financial inclusion and democratised access to a broader array of goods and services, consumers across Egypt are desperate for a timeous, efficient, digital-friendly and affordable lending solution,” said Managing Partner of Launch Africa Ventures, Zachariah George. “Kashat is making broad, bold strides towards this goal and we are proud to be backing them on this journey.”
With the pandemic serving as a catalyst, the fintech sector in Egypt and the wider MENA region is on an upward trajectory, with an array of startups stoking the digital economy’s boom through innovative financial solutions. Kashat targets a specific demographic with the aim of directly promoting financial inclusion in Egypt. With their micro-loan and nano-financial services, Kashat is serving Egypt’s lucrative unbanked sector, a market comprising more than 70% of the country’s population.