Kashat, an Egyptian micro loan solutions provider, has raised US$1.75 million in a new bridge funding round, Magnitt reported.
The round was led by pan-African VC fund Launch Africa Ventures, and had “key” regional investors participate, the report said. This included existing backers of the company Cairo Angels.
The fresh funds will be used to develop Kashat’s platform and expand operations.
Earlier this year, Kashat raised an undisclosed amount of funding from Cairo Angels, two months after it launched its mobile app for short term loans in February.
Kashat has built a mobile platform for micro lending
Kashat is a mobile platform that provides short term micro loans starting from EGP 100 (USD 6.37 at current rates) and going up to EGP 1500 (USD 95.48 at current rates).
The loans come with a repayment tenure of up to 61 days.
Kashat was founded in 2019 by Sumair Farooqui and Karim Nour, with Farooqui currently serving as the CEO of the micro lending startup. The company is managed by a partnership between Pharos Holding, a Cairo-based financial group, and Pakistani tech firm Planet N Group, which also runs Tez.
Micro lending is one of the many ways Egyptian companies are leveraging to bridge the financing gap in Egypt amidst a complex financial inclusion environment. Some initiatives in this space include the Egyptian government’s micro financing programme “Nano Finance,” and a micro lending initiative by the Dakahliya Businessmen Association for Community Development.
“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,”
Zachariah George, Managing Partner at Launch Africa Ventures, said according to the report.
Featured image credit: Kashat