Egyptian fintech startup Raseedi has acquired Kashat, including its subsidiary Pharos Microfinance, in an equity deal to expand its product offerings with instant loans, it announced in a statement today. The exact financial details of the deal were not disclosed. The acquisition will enable Raseedi to provide loans of up to EGP 3,000 to underbanked users through a completely digital process.
Founded five years ago, Raseedi initially started as a dialler app helping users make cheaper calls, with customers using the app at least 200 times per month. The company has since expanded into online top-ups and bill payments, building a behavior-based credit scoring algorithm using data from over 1 million app users. Kashat was launched in early 2020.
Through this acquisition, Raseedi will leverage Kashat’s FRA (Financial Regulatory Authority) license to offer nano loans with 1-3 month tenures. The loans will be disbursed directly to users’ mobile wallets within minutes after completing a digital eKYC process.
Raseedi has raised a total of $1.25 million in disclosed funding to date. Kashat raised $1.75 million in a bridge round in 2021.
Ahmed Atalla, CEO of Raseedi, said, “Ever since we began our journey to serve underbanked masses, our dream has been to provide a fully rounded fintech solution of payments and lending to millions of underserved masses. After growing our payments product to double-digit throughput growth per annum, now is the time to offer the market a new and unprecedented lending product.”
Karim Nour, co-founder and CEO of Kashat, commented, “This deal unifies efforts to further scale financial inclusion in Egypt and beyond. Raseedi, along with Kashat, through its subsidiary Pharos Microfinance S.A.E., will become Egypt’s only financial service provider to offer nanoloans at scale, and that was purposefully built for the task.”
The combined entity plans to expand its digital financial services beyond Egypt into other markets across Africa and Asia, subject to securing relevant licenses and regulatory approvals. The companies aim to leverage their expertise in big data and artificial intelligence to create innovative financial services for underserved populations.
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