Raseedi, a leading fintech company focused on serving Egypt’s underbanked population, has acquired Kashat, which owns Pharos Microfinance S.A.E., in a strategic equity deal aimed at expanding its product range and introducing instant loan services.
This acquisition supports Raseedi’s mission to engage individuals with no prior fintech experience or credit history through its unique daily interaction model. Raseedi’s app, which users open over 200 times per month for cheaper calls, has introduced them gradually to online top-up and bill payment services. The addition of Kashat will enable users to access instant cash loans, provided by Pharos Microfinance S.A.E., directly into their mobile wallets after passing an internal credit scoring process.
Raseedi has developed a unique credit scoring algorithm based on daily user behavior over the last five years. This algorithm can accurately generate credit scores for underbanked individuals, allowing the company to offer loans to those without traditional credit histories. The newly introduced microfinance product, Nano Finance, simplifies the documentation required for loan applications, making it more accessible for users.
Pharos Microfinance S.A.E., licensed by the Financial Regulatory Authority (FRA), is a major player in Egypt’s nanolending sector, offering loans up to 3,000 EGP with a 1-3 month term. The company primarily serves solo entrepreneurs and small business owners, helping them manage cash flow cycles and grow their businesses. Kashat’s services have been instrumental in providing underserved individuals with the necessary capital to support small industries.
With the acquisition, Raseedi plans to leverage its proprietary technology and credit scoring algorithm to offer small business owners easy access to cash loans up to 3,000 EGP. These loans will be disbursed instantly through a completely digital process, including eKYC (electronic Know Your Customer) verification, allowing for a smooth user experience.
Ahmed Atalla, CEO of Raseedi, expressed his excitement about the acquisition, saying: “Our goal has always been to provide a comprehensive fintech solution that includes both payments and lending for underserved populations. With our robust credit scoring algorithm, we are now poised to introduce an innovative lending product that will enable millions to participate in Egypt’s financial inclusion movement.”
Karim Nour, co-founder and CEO of Kashat, added: “This deal combines our efforts to scale financial inclusion across Egypt and beyond. By uniting Raseedi’s and Kashat’s expertise in big data and artificial intelligence, we are creating a center of excellence for delivering innovative financial services. We look forward to expanding our impact in Egypt and across the region.”
Looking ahead, Raseedi and Kashat plan to replicate their fully digital solution across Africa and Asia, bringing their services to underbanked populations in these regions. After establishing their presence in Egypt, Raseedi aims to expand into multiple markets by launching a fully digital solution with minimal on-the-ground operations, following the necessary regulatory approvals.
