Khazna, an Egyptian fintech startup founded in 2019, has raised $16million in pre−Series B funding, bringing its total funding to over $63 million. The investment round saw participation from a mix of global and regional investors, including Quona Capital, Speedinvest, Aljazira Capital (the investment arm of Bank Aljazira of Saudi Arabia), anb Seed Fund (managed by anb Capital), Disruptech, ICU Ventures, Khwarizmi Ventures, and SANAD Fund for MSME. The primary intent of this funding is to support Khazna’s expansion plans, which include applying for a digital banking license in Egypt and entering the Saudi Arabian market. Additionally, the funds will be used to enhance Khazna’s product offerings, reduce borrowing costs, and scale its operations to serve a larger customer base.
The investment also reflects Khazna’s strategic shift toward becoming a full-fledged digital bank for Egypt’s underserved communities. Currently, Khazna relies on wholesale debt financing in USD and EGP to fund its lending operations, which is costly. By obtaining a deposit-taking license, Khazna aims to access customer deposits, significantly lowering its cost of funds and enabling it to offer more affordable loans. The company is targeting mid-2026 to secure this license, aligning with Egypt’s Central Bank’s regulatory framework for digital banks, which was laid out in July 2024.
Why the Investors Invested
The decision by investors to inject $16 million into Khazna during its pre-Series B funding round is underpinned by a combination of market opportunity, proven business model, and strategic positioning. These factors collectively make Khazna a compelling investment, particularly in the context of Egypt’s financial landscape and the broader fintech sector in the Middle East and North Africa (MENA) region.
1. A Massive Unbanked Population
Egypt has one of the largest unbanked populations in the world, with over 60% of its 110 million citizens lacking access to traditional banking services. This gap creates a significant market opportunity for fintech solutions tailored to low- and middle-income earners. Khazna’s focus on this underserved segment — particularly workers earning less than three times the minimum wage — positions it as a critical player in driving financial inclusion. By offering services like salary advances, microloans, and payroll-integrated financial tools, Khazna addresses a pressing need for accessible and affordable financial products. Investors recognize the scalability of this model, given the sheer size of the target market and the growing demand for digital financial services.
2. Khazna is Profitable
Khazna’s ability to achieve break-even profitability in 2024 is a strong indicator of its operational efficiency and the viability of its business model. The company’s core product — credit offerings to payroll and pension recipients — has been a key driver of this success. By embedding financial services directly into payroll accounts, Khazna has created a sticky product that ensures recurring revenue streams. Additionally, its unsecured loans to gig workers and pensioners have further diversified its income sources. This profitability, achieved within a relatively short timeframe, signals to investors that Khazna is not only addressing a critical market need but also doing so in a financially sustainable manner.
3. Egypt has the Largest Diaspora Population in Saudi Arabia Where Khazna Plans Expansion to
The Saudi Arabian market represents a significant growth opportunity for Khazna, and investors are keen to capitalize on this potential. With nearly three million Egyptians living in Saudi Arabia, the remittance corridor between the two countries is one of the largest globally. Khazna’s plan to offer cross-border financial services, combining credit-led offerings with foreign exchange solutions, aligns with this opportunity. Moreover, Saudi Arabia’s Tadawul stock exchange — one of the region’s most liquid and retail-investor-driven markets — provides a clear path to a high-value exit for early-stage investors. Khazna’s goal to derive 40–50% of its business from Saudi Arabia within the next four years underscores its commitment to this expansion, making it an attractive proposition for investors seeking long-term returns.
4. Macroeconomic Tailwinds in Egypt
The timing of Khazna’s funding round coincides with a period of renewed investor confidence in Egypt’s economy. After facing significant challenges between 2022 and 2023, including currency devaluations and inflation, Egypt implemented economic reforms and adopted a more flexible exchange rate in 2024. These measures attracted over $50 billion in foreign direct investment (FDI), revitalizing the startup ecosystem. Investors view Khazna as a beneficiary of this macroeconomic recovery, particularly given its focus on financial inclusion — a sector that aligns with broader economic development goals. The company’s ability to navigate economic instability and emerge profitable further strengthens its appeal to investors.
5.A Business Model that Stands Out
Khazna’s focus on medium-term credit products, such as earned wage access (EWA) and payroll-backed lending, sets it apart from competitors like Tabby and Tamara, which primarily focus on short-term BNPL credit. This differentiation allows Khazna to cater to a broader range of financial needs, particularly for underserved communities. Additionally, the company’s strategic move toward becoming a digital bank — by securing a deposit-taking license — positions it to offer more affordable loans and expand its product offerings. Investors recognize the potential for Khazna to dominate this niche, particularly as it transitions from a fintech startup to a full-fledged digital bank.
6. Returning Investors Shows Strong Investor Confidence and Track Record
The participation of both new and existing investors in this funding round reflects strong confidence in Khazna’s leadership and vision. Global investors like Quona Capital and Speedinvest, alongside regional players such as Aljazira Capital and Khwarizmi Ventures, bring not only capital but also strategic expertise and networks. This diverse investor base enhances Khazna’s credibility and provides access to resources that can support its growth ambitions. Furthermore, the company’s ability to raise over $63 million to date demonstrates its track record of securing funding and delivering on its promises, which is a critical factor for investors.
7. Clear Path to Exit
For early-stage investors who have backed Khazna for four to five years, the company’s expansion into Saudi Arabia and its plans for a public listing on Tadawul provide a clear and lucrative exit strategy. The Tadawul stock exchange’s strong performance and high liquidity make it an attractive platform for IPOs, particularly for companies with significant regional operations. Khazna aims to generate 40–50% of its revenue from Saudi Arabia within the next four years, a target that would position it for a potential IPO on the Tadawul exchange. By targeting a public listing in the medium term, Khazna offers investors a tangible pathway to realizing high returns on their investment.
A Look at Khazna
Khazna was founded in 2019 by Omar Saleh and a team of fintech enthusiasts aiming to address financial exclusion in Egypt. The startup targets low- and middle-income workers, offering services such as salary advances, digital payments, microloans, bill payments, buy now, pay later (BNPL), medical insurance, and rent-to-own products. Khazna’s primary market is Egypt, where it has grown its user base from 150,000 in 2022 to over 500,000 in 2024. Of these users, approximately 100,000 receive their payroll through Khazna, enabling the company to embed financial services directly into their accounts.
Khazna’s core product, credit offerings to payroll and pension recipients, has been instrumental in its success. The company also provides unsecured loans to gig workers and pensioners, a segment that has contributed significantly to its profitability. By focusing on underserved communities, Khazna has carved out a niche in Egypt’s fintech landscape, differentiating itself from traditional banks and other fintech players.
Looking ahead, Khazna is strategically positioning itself to become a digital bank. Its plans to secure a deposit-taking license and expand into Saudi Arabia underscore its ambition to scale its operations and capture a larger share of the market. The company’s focus on medium-term credit products, such as earned wage access (EWA) and payroll-backed lending, sets it apart from competitors like Tabby and Tamara, which primarily focus on short-term BNPL credit.
In summary, Khazna’s innovative approach to financial inclusion, coupled with its strategic expansion plans and strong investor backing, positions it as a key player in the fintech space in Egypt and beyond. The company’s ability to adapt to macroeconomic challenges and capitalize on market opportunities highlights its potential for long-term growth and success.