Blnk, a fintech that provides instant consumer credit in Egypt, raises $32 million in debt and equity • TechCrunch

Credit card penetration in Egypt is low, with just over 4 million cards used in a population of more than 100 million people. As such, people in the country have little or no access to credit, given the few other options available in the market.

One of these options, consumer loans, is being explored by Blnk, a fintech launched last October. The digital lending platform works with Egyptian merchants to guarantee customers at the point of sale and provide them with financing to buy goods such as electronics, furniture and car services via 6-36 month installments.

Blnk said it has raised $32 million, money spread across various stages and types of funding: $12.5 million pre-seed and seed equity rounds (led by Abu Dhabi’s Emirates International Investment Company [EIIC], Sawari Ventures and other investors), $11.2 million in debt financing and $8.3 million in securitized bond issues. It plans to “accelerate financial inclusion in underserved communities across the country” and support its “AI-powered” lending infrastructure.

Customers using Blnk at the point of sale need a national ID to begin with, and then they can get funding in three minutes, according to the company. “It’s a very fast service,” Amr Sultan, co-founder and CEO, said in an interview with TechCrunch. “And by being there at the point of sale, we’re helping to increase conversion rates and offer affordable products to significantly underserved populations. We’re very focused on financial inclusion, especially how to underwrite people who don’t have a credit history.”

Sultan, who started the company with Tarek Elsheikh, Blnk said it does this via its proprietary credit underwriting system and risk scoring model that assesses customers’ risk and ability to service their debt. So far, Blnk claims to have paid out more $20 million in loans via a network of more than 300 sellers (half of whom are active) to over 60,000 customers paying an average 2.6% monthly interest rate.

Joseph Iskander, chief investment officer at lead investor EIIC, talks about the investment: “We are convinced that the Egyptian market and its startup ecosystem present a compelling opportunity for regional and international investors, and we are committed to identifying and investing in value-added businesses. We are pleased to partner with Blnk to drive financial inclusion and economic development in Egypt and we 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.