Egypt-based fintech business Raseedi announced on Wednesday the acquisition of Kashat and its subsidiary Pharos Microfinance S.A.E. in an equity transaction intended to expand their product line and offer immediate cash loans.
Both businesses were established in 2018 and are dedicated to helping Egypt’s underbanked citizens access financial services, thus this acquisition is a big step towards increasing their influence.
Raseedi has created a special credit rating system based on everyday user behaviour. Raseedi is well known for its dialler app, which helps users save money on calls while providing financial services like bill payments and airtime loans.
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Raseedi consumers to enjoy nano-loans up to 3,000 EGP
As a result of this deal, Pharos Microfinance’s entirely digital platform will now provide Raseedi consumers nano-loans up to 3,000 EGP (about $60).
The platform offers a smooth experience with adjustable repayment terms ranging from one to three months and fast distribution using mobile wallets after a simplified eKYC procedure.
As a pioneer in nano-finance, Pharos Microfinance S.A.E., licensed by Egypt’s Financial Regulatory Authority, provides small business owners with vital working capital.
By combining Kashat’s demonstrated success in nanoloans with Raseedi’s experience in behavioural data, the acquisition positions the collaboration as a game-changer for Egypt’s financial inclusion environment.
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Raseedi and Kashat CEOs express enthusiasm about the acquisition of Kashat
Ahmed Atalla, CEO of Raseedi, expressed enthusiasm about the acquisition, stating, “This milestone enables us to provide a fully rounded fintech solution, allowing underserved masses to receive credit instantly. It aligns with Egypt’s financial inclusion agenda and our vision of empowering millions with accessible financial tools.”
Karim Nour, co-founder of Kashat, shared this sentiment, stating, “This partnership unites two homegrown players in big data and AI to scale financial inclusion across Egypt and beyond. Together, we’ll deliver innovative nanoloan products at scale.”
Raseedi and Kashat intend to extend their entirely digital financial solution throughout Asia and Africa in the future. Their scalable, zero-on-ground operating strategy paves the path for broader financial inclusion globally by laying the groundwork for success to be replicated in other emerging markets.