In a population of more than 100 million people, just over 4 million credit cards are used. People in the country don't have a lot of access to credit, given the other few options in the market.
Consumer loans, one of these options, is being explored by a new company. Egyptian merchants can use the digital lending platform to provide customers with finance to purchase items such as electronics, furniture and automotive services via 6 to 36 month payments.
A total of $32 million was raised by the company, of which $11.2 million was debt financing and $8.3 was funding. It plans to increase financial inclusion in underserved communities across the country.
A National ID is required for customers to get financing at the point of sale. The co- founder and CEO of the company said in an interview that it was a very fast service. We increase conversion rates by being at the point of sale. People who don't have a credit history are the focus of a lot of our work.
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Sultan, who started the company with Tarek Elsheikh, said that the company uses a risk- scoring model to assess the customers' riskiness and ability to service their debts. Over 60,000 customers have received over $20 million in loans via a network of more than 300 merchants.
The head of investment at the lead investor said that the Egyptian market presents a compelling opportunity for regional and international investors. We look forward to working with the team to achieve their goals and we are pleased to partner with them. MoneyFellows, MNT-Halan and other financial services are offered in Egypt.
Egyptian fintech MNT-Halan lands $120M from Apis Partners, DisrupTech and others
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