Egyptian Fintech Khazna Raises $16M to Expand into Saudi Arabia and Pursue Digital Banking License
Egyptian fintech company Khazna has secured $16 million in pre-Series B funding, bringing its total investment to over $63 million. The company plans to use the funds to apply for a digital banking license in Egypt and expand its operations into Saudi Arabia.
Bridging the Financial Gap in Egypt
Founded in 2019, Khazna provides financial services tailored to low- and middle-income workers who lack access to traditional banking. The platform offers salary advances, digital payments, and micro-loans, helping workers manage their finances with greater flexibility.
Currently, more than 500,000 users rely on Khazna’s services, with 100,000 employees receiving their salaries directly through the platform. The company’s long-term goal is to integrate loans and insurance into payroll systems, making financial management easier for workers.
Focus on Credit and Profitability
Khazna has concentrated on credit solutions for payroll and pension recipients, as well as unsecured loans for gig workers. This strategic focus has led the company to achieve profitability, according to CEO Omar Saleh.
“What we did over the last two and a half years was to focus on our core product, which is credit offering to payroll and pension recipients and also unsecured loans to gig workers. This is the most profitable and core product in our journey, and getting it right was very important because it has helped us to hit profitability,” Saleh said.
In addition to credit services, Khazna offers bill payments, buy-now-pay-later (BNPL) options, medical insurance, and rent-to-own products. However, the company faces a key challenge: its inability to accept customer deposits, making lending operations more expensive. To address this, Khazna is working towards securing a deposit-taking license from Egypt’s Central Bank, which introduced a regulatory framework for digital banks in July 2024.
Expansion into Saudi Arabia
Beyond Egypt, Khazna is setting its sights on Saudi Arabia, where demand for consumer finance solutions is growing. Unlike BNPL-focused players like Tabby and Tamara, Khazna is focusing on medium-term credit solutions, including earned wage access (EWA), payroll-backed lending, and pension-based credit.
A major driver of this expansion is the strong economic ties between Egypt and Saudi Arabia, with nearly three million Egyptians living and working in the Kingdom. This presents an opportunity for Khazna to offer cross-border financial services, including credit and foreign exchange (FX) solutions.
Additionally, Saudi Arabia’s capital markets have influenced Khazna’s strategy. The Tadawul stock exchange, one of the most liquid in the region, has seen multiple IPOs in recent years. Khazna aims to generate 40–50% of its revenue from Saudi Arabia within the next four years, positioning itself for a future public listing on Tadawul. Saleh emphasized that this move would provide early-stage investors with a clear exit strategy through an IPO.
Navigating Economic Challenges
Khazna’s latest funding round was shaped by Egypt’s economic challenges, including currency devaluation and increased investor caution. Between 2022 and 2023, Egyptian startups struggled to raise capital, leading to a slowdown in venture deals. Despite these hurdles, Khazna continues to expand, securing funding to strengthen its market position and drive regional growth.
With a clear focus on financial inclusion, credit innovation, and regional expansion, Khazna is positioning itself as a leading fintech player in Egypt and the Gulf region.
Source: Techeconomy
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