Credit card penetration in Egypt is low, with just over 4 million cards in use in a population of over 100 million. As a result, people in the country are not eligible for loans compared to the few other options available in the market.
One of these options, consumer loans, is being explored by Blnk, a fintech that launched last October. The digital lending platform has partnered with Egyptian merchants to allow customers to write when they sell and provide financing for purchases such as goods. Electronics, Appliances and Automotive Services 6-36 Months Installments.
Blnk said it has raised $32 million, with the money divided into several phases and types of funding: $12.5 million in pre-seed and seed equity rounds (led by Abu Dhabi Emirates International Investment Company); [EIIC], Sawari Ventures and other investors), an $11.2 million debt financing and $8.3 million secured bond issuance. It plans to “accelerate financial inclusion in underserved communities” and support “AI-powered” projects across the country. Credit infrastructure.
Customers who use Blnk at the point of sale need a national ID for starters, then they can get financing in three minutes, the company said. “It’s a very fast service,” co-founder and CEO Amr Sultan said in an interview with TechCrunch. “By being at the point of sale, we help increase transaction volumes and provide value products to underserved populations. We focus on financial inclusion, especially how to write for people with poor credit history.”
Sultan who started the company Tarek ElsheikhBlnk does this through a proprietary credit underwriting and risk-scoring model that assesses its customers’ debt servicing capacity and risk. So far, Blnk says it has paid the money $20 million in loans with a network of over 300 dealers (half of whom are active) to over 60,000 customers paying an average interest rate of 2.6% monthly.
Joseph Iskandar, the head of investment in the investment “We are confident that the Egyptian market and startup ecosystem present a compelling opportunity for regional and international investors, and we are committed to identifying and investing in valuable businesses. We are pleased to partner with Blnk to promote financial inclusion and economic development in Egypt and look forward to working with the team to achieve their goals.” Other fintechs offering loans and other financial services in Egypt include MNT-Halan, MoneyFellows and Khazna.
