The Egyptian fintech landscape witnessed a significant development recently with Raseedi, a leading player in affordable communication services, announcing the acquisition of Kashat and its subsidiary Pharos Microfinance.
This strategic move aims to strengthen Raseedi’s financial services portfolio by introducing instant cash loans to its vast user base.
Instant Loans for the Unbanked:
A key highlight of this acquisition is the introduction of instant cash loans of up to EGP 3,000 to small businesses and solo entrepreneurs.
Leveraging its cutting-edge technology, Raseedi aims to streamline the loan application process with a digital eKYC system. This will enable borrowers to apply and receive approval within a remarkably short timeframe—less than five minutes.
Raseedi, renowned for its innovative dialler app that offers significantly cheaper calls, has consistently strived to enhance financial inclusion in Egypt.
This acquisition is a game-changer. It combines Raseedi’s cutting-edge technology, including a sophisticated behaviour-based credit scoring algorithm developed from analysing over 1 million user profiles, with Kashat’s established lending infrastructure.
This powerful partnership will enable Raseedi to become the leading provider of nanoloans in Egypt, offering customers quick and convenient access to credit with a fully digital and streamlined eKYC process.
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Expanding Reach and Impact:
The impact of this acquisition extends beyond Egypt. Both companies share a vision of expanding their digital financial solutions across Africa and Asia.
Raseedi, known for its agile and technology-driven approach, plans to enter new markets with minimal on-ground presence, prioritising regulatory approvals and leveraging its robust digital infrastructure for rapid market penetration.
Raseedi has ambitious expansion plans. Following a successful rollout in Egypt, the company intends to target other markets with significant unbanked populations, including Morocco, Uzbekistan, and various countries in Central and West Africa.
This expansion will not only increase Raseedi’s customer base but also contribute significantly to financial inclusion in these regions.
Focus on Sustainable Growth:
Raseedi’s commitment to responsible lending is evident in its focus on providing access to finance for small businesses and entrepreneurial ventures.
By offering short-term loans with repayment cycles ranging from one to three months, the company aims to support business operations and manage cash flow effectively.
Management Changes and Partnerships:
The acquisition will also bring about management changes. Raseedi will appoint a managing director to oversee Kashat’s operations and recruit personnel specialising in credit and risk management.
Karim Nour, co-founder and CEO of Kashat, emphasised the significance of the deal: “The ability to easily lend money to the masses will be expanded, and Raseedi, along with Kashat, through its subsidiary Pharos Microfinance, 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 homegrown.”
Fintech’s Rise in Emerging Markets:
This acquisition highlights the rapidly growing fintech sector in emerging markets like Egypt, where access to traditional banking services remains limited for many.
By offering quick access to small loans, Raseedi aims to tap into a significant market and contribute to greater financial inclusion.
Challenges and Opportunities:
However, Raseedi will need to navigate the regulatory landscape and manage the basic risks associated with lending to underbanked populations.
The success of its expansion will depend on its ability to effectively scale its technology, manage credit risk while adhering to responsible lending practices, and effectively leverage the data and AI capabilities of both companies.
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Navigating Financial Solutions in Egypt: From Raseedi to Pharos Microfinance
The Raseedi app has become increasingly popular in Egypt, allowing users to manage their finances more efficiently. For seamless access, users can use the Raseedi login feature.
Additionally, the Raseedi apk is available for download, catering to those seeking budget management solutions in Raseedi egypt. Similarly, platforms like Kashat loan and Kashat egypt are transforming access to microloans, providing essential support to individuals in need of an Egypt loan.
Another notable player in the industry is EASELOAN, which focuses on nano lending to bridge financial gaps quickly. Apps like the Freshmoni loan app and COB loan offer additional alternatives for instant borrowing.
For those seeking more traditional options, bank loans interest rates remain a critical factor to consider. Companies such as Pharos Microfinance SAE loan provide tailored solutions, and for enquiries, the Pharos Microfinance SAE contact details ensure easy access to their services.
The Road Ahead:
This acquisition marks a pivotal moment for Raseedi, positioning the company as a key player in the evolving fintech landscape.
With its innovative technology, focus on customer experience, and ambitious expansion plans, Raseedi is well-positioned to empower small businesses and individuals across the globe.
