Egyptian self-acclaimed super app Khazna has secured $38 million in debt and equity in Series A funding, bringing the total funding raised by the company so far to $47 million. The financing round was led by Quona Capital and saw the participation of other investors including Nclude, SpeedInvest, Algebra Ventures, Disruptech, Khawarizmi Ventures, Accion Ventures, etc. Lendable, an emerging markets lender, provided the company’s debt financing.
“We are much more of a super app than a digital bank because we have, in addition to the financial services, launched multiple non-financial services as well on the app,” its CEO Omar Selah explained emphasizing that the startup was far from being a digital bank.
Khazna provides day-to-day banking services alongside other hugely-demanded financial services. The company which focuses on middle and low-income earners was founded back in 2019 by Omar Selah, Ahmed Wagueeh and Fatimah Shenawy. Its first financial product was launched in 2020 and allowed employers to offer their employees salary advances either in part or in full. This product was dubbed Khazna HR and has been helping employees gain access to their salaries saving them from falling into a debt cycle as well as the difficulties that come with not being able to access funds.
Khazna HR is one of the different offerings being provided by Khazna. The company also offers buy-now-pay-later services as it is looking to leverage the boom happening in the space, bills payments and a prepaid debit card. “How the products are designed and the merchants that we are connected to is all in line with the needs and the interests of low to middle-income Egyptian users,” the company’s CEO emphasized greatly.
Omar Selah also disclosed that Khazna’s BNPL service is available in 1,000 merchant stores across Egypt and that the company has about 150,000 users across all its products.
The company is looking to increase its product offerings before the curtains close on the year as well as grow its user base. The startup is hugely committed to pushing for financial inclusion and a cashless society and is looking to leverage the central bank’s infrastructure for some products it has up its sleeves. “We are aligned with CBE’s vision and Khazna, at its core, believes that world-class financial services should be available to all. They’re launching multiple initiatives that we are part of, including the instant payment network where we will offer some services like instant payments through this infrastructure,” the company said.
The company’s leadership is made up of executives that have been a part of reputable institutions including World Remit, Match Group, Jumia, etc. It currently has a team of 70 people.
In a statement, Monica Brand Engel, co-founder and managing partner at Quona said that “In just two years, Khazna has scaled and monetized quickly and is already a market leader in the push for financial inclusion for the 35 million underbanked in Egypt. Empowering consumers and micro-businesses with Khazna’s convenient, user-centric, and the transparent financial super app can enable millions across Egypt to gain greater control over their financial lives. Quona is incredibly excited about Khazna’s roadmap to be the category-leading digital super app for inclusive finance in Egypt.
Khazna is looking to grow its user base in Egypt to at least 1 million by the end of this year.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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