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Egyptian fintech firm Khazna has raised $16 million in pre-Series B funding, boosting its total investment to over $63 million. The new capital will help Khazna apply for a digital banking license in Egypt and support its expansion into the Saudi Arabian market.
Bridging Egypt’s Financial Divide
Founded in 2019, Khazna is dedicated to providing financial services for low- and middle-income workers who have traditionally been excluded from conventional banking. With offerings like salary advances, digital payments, and micro-loans, Khazna helps users manage their finances more flexibly. The platform now serves more than 500,000 users, with 100,000 employees receiving their salaries directly through its system. Looking ahead, the company aims to integrate loans and insurance into payroll systems to further streamline financial management for workers.
Focused Credit Solutions and Profitability
Khazna has carved out a niche by focusing on credit products for payroll and pension recipients, as well as unsecured loans for gig workers—a strategy that has led the firm to profitability, according to CEO Omar Saleh. “Over the past two and a half years, we concentrated on our core credit offerings, which proved to be the most profitable part of our journey,” Saleh noted.
In addition to credit services, Khazna provides bill payment, buy-now-pay-later (BNPL) options, medical insurance, and rent-to-own products. However, the company currently faces higher lending costs because it is unable to accept customer deposits. To address this challenge, Khazna is working towards obtaining a deposit-taking license from Egypt’s Central Bank, following the new regulatory framework for digital banks introduced in July 2024.
Expanding into Saudi Arabia
Khazna is now setting its sights on Saudi Arabia, where consumer demand for finance solutions is growing. Unlike BNPL-centric competitors such as Tabby and Tamara, Khazna is focusing on medium-term credit products like earned wage access (EWA), payroll-backed lending, and pension-based credit.
This expansion is further supported by strong economic ties between Egypt and Saudi Arabia, with nearly three million Egyptians living and working in the Kingdom. This significant demographic offers a promising opportunity for Khazna to deliver cross-border financial services, including credit and foreign exchange solutions. Additionally, the dynamic capital markets in Saudi Arabia—highlighted by the liquidity of the Tadawul stock exchange and a series of recent IPOs—are guiding Khazna’s ambition to generate 40–50% of its revenue from the Saudi market within the next four years. This strategy is also paving the way for a future public listing on Tadawul, providing early-stage investors with a clear exit path.
Navigating Economic Challenges
Khazna’s latest funding round comes amid economic challenges in Egypt, such as currency devaluation and cautious investor sentiment, which have slowed capital raising for many startups between 2022 and 2023. Despite these hurdles, Khazna’s focused approach and commitment to financial inclusion have enabled it to secure the necessary funding to solidify its market position and drive regional growth.
With its clear focus on innovative credit solutions, financial inclusion, and strategic regional expansion, Khazna is poised to become a leading fintech player in both Egypt and the Gulf region.
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