Egypt-based Kashat, a microloan services platform, has acquired $1.75 million in capital as part of a bridge round, according to a report from Magnitt.
Kashat’s investment round has been led by VC fund Launch Africa Ventures, and also included contributions from regional investors, the report revealed. Existing investor Cairo Angels took part in the round as well.
The capital secured will be allocated towards further developing Kashat’s platform and the Fintech firm will focus on expanding its business operations.
Kashat has previously acquired an undisclosed amount of funds from Cairo Angels, which was announced just 2 months after it began offering its mobile app for issuing short-term loans (in February 2021). As noted in the announcement, Kashat has created a mobile platform for micro-lending services. It offers mainly short-duration loans starting from EGP 100 (appr. $6.37) and go up as high as EGP 1500 (appr. $95.48).
The loans are provided with a repayment tenure of 61 days, the update noted.
Established in 2019 by Karim Nour and Sumair Farooqui, Kashat is being led by Farooqui, the firm’s Chief Executive. The Fintech company is managed via a partnership between Pharos Holding, a Cairo-headquartered financial group, and Pakistan’s tech company Planet N Group, which also operates Tez.
Micro lending has quickly emerged as a popular way for Egypt-based startups to close the financing gap in the country, which needs to do a lot a more to enable greater financial inclusion.
As reported by Fintech News Middle East, some of the high-potential projects in this sector include the government-supported micro financing initiative, called “Nano Finance.” There’s also a micro lending platform backed by the Dakahliya Businessmen Association for Community Development.
Zachariah George, Managing Partner at Launch Africa Ventures, stated:
“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. Kashat is making broad, bold strides towards this goal and we are proud to be backing them on this journey.”