Kashat, an Egypt-based company specialized in providing fintech solutions and small loans, has raised $1.75m in its latest funding round.
The funding round was led by Launch Africa Ventures, whose mission is to support companies tackling the continent’s most critical challenges. It saw the participation of several major regional investors including former Cairo Angels.
Founded in 2019, Kashat set out on a mission to positively impact financial inclusion in Egypt, and the Arabic-speaking world in general, by providing accessibility and ease of productive financial services.
Through its easy-to-use mobile platform, Kashat is currently providing microfinance services in the form of micro loans to the unbanked demographic in Egypt.
It seems to be an excellent year for Fintech as growth in both deal volume and venture capital funding continues steadily as recorded in the latest venture capital dashboard in August 2021.
With 20% year-on-year growth in the number of closed transactions, fintech ranked highest in terms of transaction volume in the MENA region during August, with a difference of eight deals compared to e-commerce.
According to the Information Technology Industry Development Agency (ITIDA), the volume of investments in Egyptian startups achieved a remarkable growth during 2020 by 30%, and at a compound annual growth rate of 100% during the period from 2015-2020. The volume of investment and deals is expected to double this year.
Foreign investments in Egyptian startups accounted for 32% of the total investments.
It is followed by the United Arab Emirates with 21% and Saudi Arabia with 18%, which reflects the confidence of foreign investors and global venture capital funds in the entrepreneurial climate and Egyptian startups.