Raseedi, a leading fintech player serving Egypt’s millions of underbanked masses through its daily fintech app, has acquired Kashat, which in its role owns Pharos Microfinance S.A.E, a subsidiary of Kashat, in an equity deal to broaden its product offerings and introduce instant loans.
The acquisition
The acquisition builds on Raseedi’s mission to introduce underbanked masses who have no previous fintech experience or credit history through its unique daily stickiness approach. By providing masses with a dialer app to make cheaper calls, Raseedi users open the app at least 200 times/month to make calls and slowly introduces them to online topup and bill payments.
cash loans
Now with the new acquisition, users will be able to access and apply for instant cash loans provided by Pharos Microfinance S.A.E that are directly deposited into their mobile wallets (after passing the internal credit scoring process). Over the past 5 years, Raseedi has built a unique daily behavior-based credit scoring algorithm that can accurately generate customer credit scores and disburse loans to underbanked masses with no prior credit history. It is worth mentioning that the microfinance product (Nano Finance) is characterized by simplifying the documentation required from the client to obtain the financing product.
Pharos Microfinance
Pharos Microfinance S.A.E is an FRA-licensed fintech player in the nano lending industry, offering the only nano loans product in the market of up to 3,000 EGP through its 1-3-months instant short-term tenure loans. Pharos Microfinance S.A.E helps solo business owners and nano businesses develop and grow their businesses and manage through cash flow cycles. Through its one of a kind offering, Kashat provides an underserved segment of millions with the needed instant cash to grow and develop small industries.
technology
Raseedi, will now use its proprietary technology and home grown credit scoring algorithm to provide small and solo business owners with means to apply for instant disbursed cash of up to
3,000 EGP provided by Kashat in less than 5 min through a smooth onboarding and completely digital eKYC process. The unique offering leverages short cycle loans through 1 month, 2 month, and 3 month tenure cash loans.
fintech solution
Ahmed Atalla, CEO of Raseedi said: “Ever since we began our journey to serve underbanked masses, our dream has been to provide a fully rounded fintech solution of payments and lending to millions of underserved masses. We have built a strong credit scoring algorithm over the past years from billions of data points and daily behavior analysis of over 1 million Raseedi app users. After growing our payments product to double digit throughput growth per annum, now is the time to offer the market a new and unprecedented lending product. Imagine applying, going through a fully digital eKYC and receiving your cash loan in your wallet within seconds. With this great milestone, we can say those who have never been given a credit-score can now be part of Egypt’s financial inclusion movement that has been on the top of the Egyptian government’s agenda. We look forward to working with Kashat team and the FRA on this breakthrough product and offering”
easily lend money
Karim Nour, Co-founder and CEO of Kashat, said: “This deal unifies efforts to further scale financial inclusion in Egypt and beyond. The ability to easily lend money to the masses will be expanded, and Raseedi along with Kashat, through its subsidiary Pharos Microfinance S.A.E. will become Egypt’s only financial service provider to offer nano loans at scale; and that was purpose built for the task. This deal is important because the companies involved are true big data and artificial intelligence players, and are both home-grown. It is refreshing that this will create a true center of excellence in both the delivery of innovative financial services, and Al. We are excited at what Raseedi and Kashat can and will do in the future, at home, and across the region.”