News
Financial Identities’ Cassbana Raises 6 Digits USD
Cassbana, a financial identities’ startup, announced raising a pre-seed round of 6 digits USD to revolutionize the financial service industry in emerging markets.
Disrubtech, a US$25million Fintech fund, led the investment round among other investors. Disrubtech was established by Mohamed Okasha, Fawry’s co-founder and former managing director.
Since it was launched in June 2020, Cassbana has managed to gain significant grounds in the Egyptian market with its instant financial identity Android app. The app is designed to enable suppliers and merchants to sell their products to their customers through short-term loans allowing them to serve Egypt’s largely financially underserved market.
Speaking to Haitham Nassar, Cassbana’s Founder CEO and former Careem Planning Director in Egypt, he pointed out what makes Cassbana essentially different from any “Fintech” initiative or startup.
He says, “The entire point behind Cassbana is to create financial identities for the underserved in Egypt where shadow economy is almost double or triple the size of the formal economy, Cassbana is used to assist suppliers and merchants in making better, less biased decisions and helping them take more impactful and real-time decisions using our technologies.”
Haitham Nassar- Cassbana Founder& CEO
“These financial identities will help the suppliers and merchants to take a proper decision on how they can serve their customers, especially those unbanked, and allow them to find funding through alternative means.”
Putting the Tech in Fintech
The platform relies on Machine Learning and Artificial Intelligence to gather certain behavioral data points that, in turn, develop patterns. These patterns will help financial institutions detect fraud better while allowing the non-fraudulent borrowers to be seen and supported, and more importantly, banked beyond the expected stack of documents.
The market entry for Cassbana relies heavily on the supply chain market as it is an easy entry for small sellers defaulting to suppliers constantly, and suppliers are eager to have a tool in place to allow them to make proper decisions when they borrow their customers. Instead of defaulting on their wholesale merchandise, they purchase the products needed in installments to keep the business going.
“If a seller needs merchandise worth 5000 EGP but can’t afford it, chances are they will either close up shop or search for a supplier who can give it to him on installments. Cassbana uses the power of community to support micro-businesses with an instant decision-making tool. It allows the suppliers to immediately decide whether to sell such products on installments to the merchant or not, which helps keep them afloat while using the data points to grow our data banks,” Haitham says.
“So in a short time, any supplier, merchant, or financial institution looking into micro-lending will have a data bank of financial identities to offer low-risk loans to those who truly deserve it.” He adds.
With a team of data analysts and machine learning experts, Cassbana also focuses on the tech part of Fintech, with plans to use the funding to grow its tech team further and develop the algorithms.
The Cassbana Equation for Financial Inclusion
Serving Financial Inclusion
Haitham notes Egypt’s bid for Financial Inclusion.
“While Egypt’s financial and regulatory entities strive wonderfully to bank the unbanked, Cassbana has come out to offer an alternative, reliable, fraud-free way of offering solutions that enable suppliers and merchants to finance their customers.”
“Maybe it is time we started seeing shadow businesses differently, and it is our duty to help them become registered, taxed, and growing in a healthy financial ecosystem. besides, it helps shadow economy players to take proper financial decisions based on our technologies.”
Lendo, a Saudi Arabia-based Shariah-compliant crowdlending marketplace, has signed a Memorandum of Understanding (MOU) today with J.P. Morgan to improve access to financing for small and medium-sized enterprises (SMEs) across the country.
The MOU was signed during 24 Fintech, a premier fintech event that brings together industry leaders, innovators, and investors in Riyadh.
J.P. Morgan and Lendo are working together on potential opportunities to support the SME sector in Saudi Arabia in growing and sustaining the remarkable demand in this market.
“This strategic collaboration with J.P. Morgan, a pioneer in the financial industry, marks a significant milestone for Lendo,” said Osama Alraee, CEO and co-founder of Lendo. “By combining our strengths, we’ll deliver cutting-edge financial solutions to SMEs, supporting their growth and contributing directly to the realization of Saudi Arabia’s Vision 2030.”
The SME financing landscape in MENA presents a substantial market opportunity as limited financial access continues to restrict the growth of the region’s businesses, with commercial banks hesitant to issue loans to SMEs at scale, resulting in a high percentage of declined financing requests annually.
The total SME financing gap in developing countries is estimated to be approximately $5.2 trillion, according to the International Finance Corporation (IFC).
Lendo’s debt crowdfunding platform aims to bridge the financing gap for SMEs, aligning with Saudi Vision 2030’s goal to significantly expand SME lending from 4% in 2018 to 20% by 2030.
According to the latest available report from the Saudi Central Bank (SAMA), the total value of debt crowdfunding in Saudi Arabia surged from SAR 1.4 million in 2019 to SAR 771 million in 2022, marking a remarkable growth.
Lendo raised SAR 132 million ($35.2 million) in total funding from leading investors, including the most recent Series B led by Sanabil Investments, a wholly-owned company by the Public Investment Fund (PIF).
Since its inception in December 2019, Saudi fintech Lendo has processed over 5,000 financing transactions on its platform, providing over SAR 2 billion ($600 million) in financing to SMEs and generating SAR 280 million ($74 million) in returns for investors.
TA Telecom, a prominent player in the Middle East’s tech sector, has unveiled AnteThink, an AI-driven tool designed to enhance decision-making processes for individuals and businesses alike.
With a history of influencing the tech landscape through various initiatives, including advanced mobile solutions, high-volume payment platforms, and ventures in e-commerce, fintech, and analytics, TA Telecom has carved a niche for itself. Serving a vast user base of 40 million and processing an impressive 15 billion transactions across its platforms, TA Telecom has cemented its position as a tech industry leader, with some of its ventures achieving the status of Y Combinator companies.
Established in 2000, TA Telecom has emerged as a prominent player in the technology sector. With over 40 million users and processing 15 billion transactions annually, TA Telecom has made a notable impact. Recognized for its contributions by the Financial Times and featured on Deloitte’s list of fastest-growing tech companies in EMEA, TA Telecom is known for its adaptability and forward-thinking approach in the ever-evolving global tech landscape.
Sameh Ibrahim, CEO of TA Telecom, highlights the potential of AnteThink: “AnteThink reflects our commitment to leverage technology for practical impact. It aims to provide clarity and confidence in decision-making, whether in the professional or personal sphere. AnteThink is a tool that can empower startup founders, executives, and individuals to make more informed choices, alleviating the stress and uncertainty often associated with critical decision-making.”
Mostafa Ashour, CEO of Y Combinator-backed startup NowPay, shared his perspective on AnteThink: “AnteThink transformed our strategic planning, allowing us to explore various scenarios and prepare for different outcomes. It has strengthened our decision-making process, helping us navigate the complexities of the business landscape.”
AnteThink embodies TA Telecom’s commitment to innovation, focusing on supporting the startup ecosystem. The tool is tailored to help leaders and executives navigate the complexities of business management and strategic development by providing a clear picture of potential outcomes.
Key Features of AnteThink include:
1. Second Order Mode: Offering a comprehensive analysis of broader impacts, fostering a strategic mindset for long-term success.
2. Optionality Mode: Enabling detailed evaluation and comparison of different choices to ensure decisions align with strategic objectives and values.
3. Inversion Mode: Focusing on identifying and mitigating potential risks, thereby strengthening risk management strategies.
Credit: Antethink
AnteThink’s advanced AI technology aims to assist decision-makers with insightful analytics, offering guidance through the decision-making process.
Selina Bieber, the Senior Director of Global Markets at GoDaddy, has predicted a significant increase in Egypt’s e-commerce revenue. By 2028, it could reach $9.88 billion.
Godaddy is forming strategic partnerships and launching initiatives to help local entrepreneurs. These efforts align with Egypt’s digital transformation goals and its Vision 2030.
In an interview with the Arabic financial news “Amwal Al Ghad,” Bieber spoke about GoDaddy’s plans and how they match Egypt’s 2023 strategy. She highlighted the company’s aim to provide effective, easy-to-use digital tools and services. By 2024, GoDaddy wants to serve more customers in Egypt by making its digital tools more widespread.
The company is working closely with the Egyptian government, especially the Ministry of Planning. They are offering training programs to improve the digital skills of startups and existing businesses. GoDaddy’s services in Egypt include domain registration, web hosting, e-commerce solutions, and digital marketing tools.
Recent surveys support Bieber’s positive outlook for e-commerce in Egypt. They show a clear trend towards digital strategies among small businesses. Many are realizing the importance of having an online presence for their growth and success.
As GoDaddy continues its partnerships and supports government digital initiatives, its influence on Egypt’s digital landscape is growing. The company is committed to sustainability and reducing its carbon footprint. It aims not just for business growth but also to contribute to a sustainable and thriving digital economy in Egypt.
The 2028 projection indicates a vast potential for e-commerce, with GoDaddy playing a key role in this digital evolution.
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