Khazna : This eco-friendly start-up fights financial insecurity in Egypt
Egypt's socio-economic context is still fragile. With inflation at an alarming rate - approaching 40% by September 2023 - the World Bank estimates that 60% of Egypt's 104 million people are currently living below the poverty line. This critical situation is reflected in sharp inequalities in a number of areas, notably financial services. Although 50% of Egyptians own a telephone, only one in three enjoys full access to financial services. Khazna targets the remaining two-thirds.
Khazna : a mission of financial inclusion
The Cairo-based start-up, founded in 2019 by Omar Saleh, Ahmed Waqueeh and Fatma El Shenawy, deploys its financial services offering to poor households throughout the Middle East. Among other things, it enables them to make withdrawals and deposits free of charge. The application also provides an exhaustive lexicon of salary-related elements and usage, the idea being to guide users towards total financial security and independence. It even enables small and medium-sized businesses to easily manage salary advances, requested directly by employees via the app, and obtained in real time. According to the 60 decibels research center, 60% of Egyptian users consider that Khazna has changed their lives.
This technology-based approach to budget and salary management is attracting a growing number of investors in markets as diverse as France, Egypt, Spain, Indonesia and Nigeria, where start-ups such as Spayr, Khazna, Payflow, Xendit and Earnipay are already active. The appeal of this major financial inclusion project is that it spares consumers the stress of running out of money or having to borrow from predators.
Khazna has not finished fighting poverty. The young fintech is planning to offer additional services such as insurance. To achieve this new goal, the start-up is forging strong partnerships with major companies such as Quona Capital, Speedinvest, Nclude and Arab Bank, with the aim of raising more funds. In April 2022, Khazna raised $38 million in Series A debt and equity, while the management team continued to perfect its technological tools in Khazna's data centers. The result: in 2023, the start-up wins the Fintech Social Impact Award.
When solvency rhymes with sustainability: a start-up that adapts to climate issues
What else ? Khazna is well connected to its users and their needs, yet it is not neglecting more global issues. In line with the COP27 conference, which took place in 2022 in Sharm El Sheikh (Egypt), Khazna has just begun its journey towards greater energy sobriety. The first, but by no means least important, step is to bring the fixed infrastructures that concentrate the data mobilized by the application up to standard. Representing 4% of global energy consumption in 2015, according to EDF subsidiary Réseau de Transport d'Électricité (RTE), data centers are among the biggest emitters of carbon dioxide.
Focused on building sustainable data centers in the region, Khazna CEO Hassan Alnaqbi confirmed the recent adoption of international environmental regulations. Already, the Egyptian fintech has begun to reduce its water consumption by reusing wastewater, and is also planning to develop a photovoltaic power plant in partnership with Emerge, the joint venture between EDF and Masdar. Khazna's initiatives have also been rewarded by the North American Leadership in Energy and Environmental Design (LEED) system, which was quick to award the start-up four building certificates.
"It's by being responsible that we can build a brand based on trust"
Fatma Ashkanani, assistant manager of khazna
Fatma Ashkanani, Deputy CEO, insists on the importance of this direction taken by the start-up: "It's only by being responsible that we can nurture our company's reputation and build a brand based on trust. By investing in international best practice and creating a supportive environment, Khazna aims to attract the best talent". An ambition that forecasts many more developments.
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