Egyptian Fintech Blnk Raises $32 Million
Blnk, a fintech startup enabling instant consumer credit in Egypt, raises $23.7 million in equity and debt financing, and $8.3 million in securitized bond issuance to accelerate financial inclusion in underserved communities across the country.
The funds will support the further development of Blnk’s artificial intelligence-driven lending infrastructure and the financing of the company’s rapidly growing portfolio of customers.
The combined pre-seed and seed funding rounds of $12.5 million were led by Abu Dhabi’s Emirates International Investment Company (EIIC) and Egypt-based leading venture capital firm Sawari Ventures, with participation from several prominent local and international angel investors. The debt financing of USD 11.2 million was secured from a number of leading local banks. The $8.3 million securitized bond issue was guaranteed by the National Bank of Egypt and Banque du Caire, making Blnk the youngest Egyptian startup to secure its loan book.
Launched in October 2021, Blnk has developed a digital lending platform that gives sellers of all sizes the opportunity to immediately guarantee and finance their customers’ purchases at the point of sale. With just a National ID and in as little as 3 minutes, consumers can access financing to purchase a wide range of products or services, including electronics, furniture and car services, and pay over installments from 6 to 36 months. Leveraging its vast base of merchant branches across Egypt, Blnk has disbursed more than $20 million in loans to date. Sellers also increase profitability through the transaction commission that Blnk provides.
According to the International Monetary Fund, Egypt is expected to become the second largest Arab and African economy by the end of 2022. However, limited consumer credit penetration – only 4 percent of Egyptians have credit cards – means that consumers and businesses across the country are unable to take full advantage of the opportunities to act and maximize the country’s full economic potential. By providing inclusive access to finance for consumers across the country, Blnk supports further growth and development in the Egyptian economy.
Speaking about the new funding, Amr Sultan, co-founder and CEO of Blnk, said: “Our mission is to make it easier for more Egyptians to buy the products and services they want by offering inclusive and convenient consumer credit at the point of sale. We are delighted for having the support of a large group of investors at an early stage in our journey, with their support we believe we can drive financial inclusion in Egypt as well as in the Middle East and North Africa.
Joseph Iskander, Chief Investment Officer at EIIC, said: “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-adding 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”.
Hany Al Sonbaty, Managing Partner at Sawari Ventures, stated: “we are delighted to have Blnk in our portfolio and support them to deliver innovative solutions to tackle the pressing challenge of financial inclusion in Egypt. The company has the right combination of a experienced team and a scalable business model, with a clear path to profitability”.
