Egyptian fintech startup Khazna has secured $16 million in pre-Series B funding to support its application for a digital banking licence in Egypt and expand into Saudi Arabia.

Khazna aims to provide financial services to underserved low- and middle-income workers. With this latest investment, the company is set to strengthen its market position and drive regional growth.

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Bridging Egypt’s financial gap

Khazna is committed to offering financial services for individuals who are often excluded from traditional banking. The company provides salary advances, digital payments, and micro-loans, helping users manage their finances efficiently. Currently, it serves over 500,000 users, with 100,000 employees receiving salaries through its platform. Looking ahead, Khazna plans to integrate loans and insurance into payroll systems to enhance financial inclusion.

$16 Million investment to drive growth

Khazna has strategically focused on payroll-backed credit and unsecured loans for gig workers, a model that has driven profitability. CEO Omar Saleh emphasized that credit products have been the most profitable part of Khazna’s journey, allowing it to scale sustainably.

The fundraising round was led by SANAD Fund for MSME, anb Seed Fund, Aljazira Capital, Khwarizmi Ventures, Nclude, ICU Ventures, Quona, Speedinvest, and Disruptech Ventures. With this infusion of capital, Khazna aims to accelerate its expansion plans and secure a stronger foothold in the financial sector.

Khazna is working toward obtaining a deposit-taking license under Egypt’s new digital banking regulations to reduce borrowing costs and offer more affordable loans. This move will enable the fintech company to accept customer deposits and lower its cost of funds.

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Expanding into Saudi Arabia’s growing market

Khazna is also eyeing expansion into Saudi Arabia, where demand for financial solutions is rising. Unlike competitors focused on Buy Now, Pay Later (BNPL) services, Khazna will offer medium-term credit products such as earned wage access (EWA), payroll-backed lending, and pension-based credit.

As part of its expansion strategy, Khazna will form strategic partnerships in Saudi Arabia to tailor its offerings to local market needs. The move aligns with Saudi Vision 2030, which fosters fintech innovation and digital economic growth.

Saudi Arabia presents a lucrative market, with nearly three million Egyptians living and working there, creating opportunities for cross-border financial services. Khazna aims to generate 40-50% of its revenue from Saudi Arabia within the next four years, positioning itself for a potential IPO on the Tadawul stock exchange.

Despite economic challenges in Egypt, including currency devaluation and investor caution, Khazna’s focused strategy and commitment to financial inclusion have secured its position as a leading fintech player in the region. With this latest funding, the company is set to drive regional growth and financial accessibility for underserved communities.