Fintech company Raseedi from Egypt buys local nanolending app Kashat.
Egyptian Fintech Startup Raseedi Expands with Acquisition of Kashat and Pharos Microfinance
Egyptian fintech startup Raseedi is set to expand its fintech offerings and retail presence, following its acquisition of Kashat and Pharos Microfinance. The move is part of a broader strategy to launch flagship retail stores and extend services beyond digital payments into microfinance and other financial services.
Karim Nour, co-founder and CEO of Kashat, commented on the deal, while specific details about Raseedi’s post-acquisition strategy are limited. However, the acquisitions indicate a strategy to diversify financial products and deepen market penetration by combining fintech solutions with microfinance capabilities.
Raseedi initially started as a dialler app for cheaper calls back in 2019. Kashat, launched in early 2020, has been operating as a digital lending platform, offering loans through a completely digital process. The acquisition will allow Raseedi to leverage Kashat's Financial Regulatory Authority (FRA) license to offer nano loans with tenures of 1-3 months.
Through this acquisition, Raseedi will be able to provide loans of up to EGP 3,000 to underbanked users, aiming to provide a fully rounded fintech solution of payments and lending to millions of underserved masses. Ahmed Atalla, CEO of Raseedi, stated that the company aims to create innovative financial services for underserved populations.
The combined entity plans to expand its digital financial services beyond Egypt, subject to securing relevant licenses and regulatory approvals. They also aim to become Egypt's only financial service provider to offer nanoloans at scale, leveraging their expertise in big data and artificial intelligence.
Raseedi has raised a total of $1.25 million in disclosed funding, while Kashat raised $1.75 million in a bridge round in 2021. The expansion into other markets across Africa and Asia is expected to further bolster their growth and financial inclusion efforts.
In summary, Raseedi’s plan after acquiring Kashat and Pharos Microfinance focuses on expanding its fintech product suite, retail footprint, and microfinance services, aiming to leverage the strengths of these complementary businesses to accelerate growth and financial inclusion in Egypt and beyond.
- The acquisition of Kashat and Pharos Microfinance by Raseedi Signifies a broader strategy to not only extend digital payment services but also diversify financial products and increase market penetration, merging fintech solutions with microfinance capabilities.
- With the acquisition of Kashat, Raseedi will provide loans of up to EGP 3,000 to underbanked users, aiming to offer a comprehensive fintech solution that encompasses both payments and lending services, thereby enhancing financial inclusion in Egypt and beyond.
