Khazna Raises USD 16 M Pre-Series B To Expand Digital Banking In Egypt & Beyond

Khazna, an Egyptian fintech startup focused on financial inclusion for low- and middle-income workers, has raised USD 16 M in pre-Series B funding, bringing its total funding to over USD 63 M. The investment, its latest since a USD 38 M Series A in 2022, will fuel its expansion as it pursues a digital banking license in Egypt and prepares to enter the Saudi Arabian market.

Since its founding in 2019 with co-founder Omar Saleh at the helm, Khazna has grown from offering salary advances and micro-loans to a broader suite of financial services, including payroll-backed lending, digital payments, and insurance. Its user base has expanded to over 500,000, with 100,000 payroll customers integrating directly into its ecosystem. The fintech recently achieved breakeven, driven by its core lending products catering to payroll recipients, pensioners, and gig workers.

A key milestone for Khazna is securing a deposit-taking license, which would lower its cost of funding and position it as a digital bank. With Egypt’s Central Bank introducing regulations for digital banking in 2024, Khazna aims to obtain the license by mid-2026. Meanwhile, its expansion into Saudi Arabia aligns with a growing demand for consumer finance solutions. The Egypt-Saudi remittance corridor and Saudi’s investor-friendly capital markets make the region an attractive next step.

The funding round, influenced by Egypt’s improving economic outlook, saw participation from new and returning investors, including Quona, Speedinvest, Aljazira Capital, anb Seed Fund, DisrupTECH, ICU Ventures, Khwarizmi Ventures, and SANAD Fund for MSMEs. Looking ahead, Khazna aims to have 40-50% of its business in Saudi within four years, paving the way for a potential IPO on the Tadawul stock exchange.4o