Egypt’s Khazna Raises $16 Million as It Eyes Digital Banking, Saudi Expansion

Egyptian fintech company Khazna has raised $16 million in pre-Series B funding, bringing its total investment to over $63 million. 

The company, which provides financial services to low- and middle-income workers, plans to use the funds to apply for a digital banking licence in Egypt and expand into Saudi Arabia.

Founded in 2019, Khazna aims to bridge the financial gap for Egyptians who lack access to traditional banking. The company offers services such as salary advances, digital payments, and micro-loans, allowing workers to manage their finances with greater flexibility. 

Currently, over 500,000 people use Khazna’s products, with 100,000 receiving their salaries directly through the platform. The company’s goal is to integrate financial services such as loans and insurance into payroll systems, making financial management more accessible for workers.

Khazna has focused on credit offerings for payroll and pension recipients, alongside unsecured loans for gig workers. This approach has helped the company reach profitability, according to CEO Omar Saleh. 

“What we did over the last two and a half years was to focus on our core product, which is credit offering to payroll and pension recipients and also unsecured loans to gig workers. This is the most profitable and core product in our journey, and getting it right was very important because it has helped us to hit profitability,” Saleh said.

In addition to loans, Khazna provides bill payment services, buy-now-pay-later (BNPL) options, medical insurance, and rent-to-own products. However, one of the company’s biggest challenges is its inability to accept customer deposits, which makes lending operations costly. 

To address this, Khazna is working to secure a deposit-taking licence from Egypt’s Central Bank, which introduced a regulatory framework for digital banks in July 2024.

Beyond Egypt, Khazna is setting its sights on Saudi Arabia, where demand for consumer finance solutions is rising. Unlike BNPL companies such as Tabby and Tamara, which focus on short-term credit, Khazna aims to provide medium-term credit solutions like earned wage access (EWA), payroll-backed lending, and pension-based credit.

A key factor driving this expansion is the strong economic ties between Egypt and Saudi Arabia, with nearly three million Egyptians living and working in Saudi Arabia. This presents an opportunity for Khazna to offer cross-border financial services, particularly in credit and foreign exchange (FX) solutions.

Added to these, Saudi Arabia’s capital markets have influenced Khazna’s decision. The Tadawul stock exchange, one of the most liquid in the region, has hosted multiple IPOs in recent years. 

Khazna plans to generate 40–50% of its revenue from Saudi Arabia within the next four years, positioning itself for a public listing on Tadawul. Saleh noted that this would provide early-stage investors with a clear path to exit, making an IPO a viable long-term strategy.

Khazna’s latest funding round was shaped by Egypt’s recent economic instability, including currency devaluation and investor caution. Between 2022 and 2023, fundraising for Egyptian startups became difficult, leading to a slowdown in venture capital deals. 

However, 2024 brought a turnaround, with over $50 billion in foreign direct investment (FDI) flowing into the country following economic reforms.

This renewed investor assurance has benefited Khazna, which secured funding from both global and regional investors, including Quona, Speedinvest, SANAD Fund for MSME, anb Seed Fund, Aljazira Capital, Tibas Ventures, Khwarizmi Ventures, Nclude, and ICU Ventures.

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