ImpactAlpha, March 10 – Cairo-based fintech Khazna launched in 2019 to bring financial services to 20 million underbanked Egyptians. The company offers mobile and online bank accounts as well as salary advances. It raised an undisclosed amount of seed funding from Cairo-based Algebra Ventures and fintech-focused impact investor Accion Venture Lab.
Khazna is the “first neobank for the underserved in Egypt” and is focused on building out responsibly-priced consumer financial products, which is why its first lending product is tied to customers’ earning potential, Accion Venture Lab’s Vikas Raj told ImpactAlpha. Comparing the company with other neobank and fintech approaches, he added, “You can’t just do an unsecured loan over the phone and ensure responsible pricing.”
Khazna is Accion Venture Lab’s first investment in Egypt. The firm expects to do more deals in the country, as its financial services sector expands. “We’re now seeing the Central Bank of Egypt opening up and making financial inclusion a priority,” says Accion Venture Lab’s Ashley Lewis. That, coupled with high rates of “digital acceptance” and experienced entrepreneurs starting their second and third companies is generating solid fintech deal pipeline for investors, she adds.