In a bold move to expand its financial offerings, fintech startup Raseedi has acquired Kashat, along with its subsidiary Pharos Microfinance, in an equity deal. This acquisition aims to introduce instant nano-loans to Raseedi’s portfolio, making financial services more accessible for small businesses and individuals in Egypt and beyond.
A Game-Changing Financial Solution
With this acquisition, Raseedi plans to roll out a new financial product tailored for small business owners and sole proprietors. Through Kashat’s nano-financing capabilities, users will be able to apply for instant cash loans of up to EGP 3,000. These cash loans go through in less than five minutes. These short-term loans, which have repayment cycles of one to three months, will leverage Raseedi’s proprietary technology and credit-scoring algorithm. This innovation could significantly enhance access to financial services for Egypt’s underbanked population.
Big Plans for Expansion
Raseedi’s ambitions don’t stop at Egypt. According to CEO Ahmed Atalla, the company plans to launch in Morocco within the next 12 months. In fact, it aims at targeting markets with significant unbanked populations. Other regions on the radar include Uzbekistan and parts of Central and West Africa. Atalla revealed that the company aims to grow its active monthly user base from the current 120,000 to 1.5 million in the next 6–8 months. Eventually, the user base will reach 3 million monthly users.
Atalla emphasized the broader vision: “We aim to disburse loans to underbanked individuals and small businesses, offering opportunities for entrepreneurial ventures and day-to-day financial needs.”
Expanding B2B Services
Raseedi also has plans to introduce a B2B service targeting industries with high mobility workforces. In effect, this will involve partnerships with ride-hailing companies to provide drivers with instant payments against future rides paid for via credit cards. Similarly, delivery workers could receive cash advances of up to EGP 3,000, repayable in the short term. These initiatives are expected to launch in the second half of the year. Moreover, it will help large-scale businesses empower their workers through accessible financial tools.
Strengthening the Raseedi Kashat Team
To lead the integration of Kashat into its operations, Raseedi will hire a managing director and bolster its credit and risk management teams. This strategic investment in human resources ensures the company can manage its growing portfolio and maintain a high standard of service delivery.
What They’re Saying
The acquisition represents a milestone for Egypt’s fintech landscape. Karim Nour, co-founder and CEO of Kashat, said: “This partnership positions Raseedi and Kashat as the only financial services provider in Egypt capable of offering nano-loans at scale. Both companies are homegrown innovators, leveraging big data and AI to bring financial inclusion to the masses.”
With this deal, Raseedi aims to solidify its position as a leader in Egypt’s non-banking financial services sector, setting the stage for rapid growth and impactful innovation in the region’s fintech space.
