Raseedi, an Egypian fintech serving Egypt’s millions of underbanked masses has acquired Kashat, and its subsidiary Pharos Microfinance, in an equity deal to broaden its product offerings and introduce instant loans.
By providing the masses with a dialler app to make cheaper calls, Raseedi users open the app at least 200 times per month to make calls and slowly introduce them to online topup and bill payments.
According to Ahmed Atalla, CEO of Raseedi: “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 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. Over the past 5 years, Raseedi has built a unique daily behaviour-based credit scoring algorithm that can accurately generate customer credit scores and disburse loans to underbanked masses with no prior credit history.
Pharos Microfinance S.A.E. is a fintech player in the nanolending industry, offering the only nanoloans product in the market of up to 3,000 EGP through its 1-3-month instant short-term tenure loans. Pharos Microfinance S.A.E. helps solo business owners and nanobusinesses develop and grow their businesses and manage through cash flow cycles. Kashat provides an underserved segment of millions with the needed instant cash to grow and develop small industries.
Raseedi will now use its proprietary technology and homegrown 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 minutes 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.
Karim Nour, co-founder and CEO of Kashat, said: “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 centre of excellence in both the delivery of innovative financial services and AI. We are excited at what Raseedi and Kashat can and will do in the future, at home and across the region.”
Raseedi and Kashat plan to replicate their fully digital solution across Africa and Asia to serve underbanked masses in these regions.