Based in Egypt Kashat, a microcredit services platform, acquired $ 1.75 million in capital as part of a fundraiser, according to a report by Magnitt.
Kashat’s investment round was led by venture capital fund Launch Africa Ventures and also included contributions from regional investors, the report revealed. Existing investor Cairo Angels also participated in the round.
The capital obtained will be used for further development of the Kashat platform and the Fintech company will focus on expanding its business operations.
Kashat has already acquired an undisclosed amount of funds from Cairo Angels, which was announced just 2 months after it started offering its mobile app for issuing short-term loans (in February 2021). As stated in the announcement, Kashat has created a mobile platform for microcredit services. It mainly offers short term loans starting at EGP 100 (around $ 6.37) and up to EGP 1,500 (around $ 95.48).
The loans come with a repayment term of 61 days, the update notes.
Created in 2019 by Karim Nour and Sumair farooqui, Kashat is headed by Farooqui, the general manager of the company. The Fintech company is managed through a partnership between Pharos Holding, a financial group headquartered in Cairo, and the Pakistani tech company Planet N group, which also operates Tez.
Microcredit has quickly become a popular way for Egypt-based startups to bridge the funding gap in the country, which needs to do much more to enable greater financial inclusion.
As reported By Fintech News Middle East, some of the high potential projects in this sector include the government-backed micro-finance initiative called “Nano Finance”. There is also a microcredit platform supported by the Dakahliya Businessmen Association for Community Development.
Zechariah George, Managing Partner at Launch Africa Ventures, said:
âWith the growing purchasing power of customers, increasing financial inclusion and democratized access to a wider range of goods and services, Egyptian consumers are desperate for a fast, efficient, digital loan solution. and affordable. Kashat is taking big, bold steps towards this goal and we are proud to support them in this adventure. “