CAIRO, EGYPT – Egyptian fintech company Blnk has raised $37.1 million in equity and debt funding to expand its point-of-sale consumer financing business, according to a statement posted on Allafrica on Wednesday.
The funding round includes $12.5 million in Series A equity funding led by Algebra Ventures, with participation from SANAD Fund for MSME, Endeavor Catalyst, and Emirates International Investment Company, as reported by the company. Blnk also secured $24.6 million in local debt facilities from banks and non-bank lenders including National Bank of Egypt, Suez Canal Bank, Bank Albaraka, Corplease, Globalcorp, and BM.
The company’s point-of-sale consumer financing business aims to increase financial inclusion for individuals and small businesses in Egypt, by providing them with access to credit and financing options that were previously unavailable, said Amr Awadallah, Blnk’s Chief Executive Officer, in an interview with Bloomberg on Monday. “Our goal is to make credit more accessible and affordable for Egyptians, and to help them achieve their financial goals,” Awadallah said. “We believe that our platform can play a significant role in promoting financial inclusion and economic growth in Egypt,” he added.
From an economic perspective, the expansion of consumer credit access in Egypt could have a positive impact on the country’s economy, by increasing consumer spending and boosting economic growth, said Mona Mansour, an economist at the Egyptian Ministry of Finance, in a statement to Reuters on Tuesday. “Increasing access to credit for individuals and small businesses can help to stimulate economic growth and job creation, which are critical for Egypt’s economic development,” Mansour said. “The government is considering measures to support the growth of the fintech sector, and to promote financial inclusion in the country,” she added.
From an AfricaTells intelligence perspective, the funding secured by Blnk is a significant development for Egypt’s fintech sector, and could have a positive impact on the country’s economy, by increasing financial inclusion and promoting economic growth and development. The expansion of consumer credit access in Egypt could also have implications for the broader African continent, by providing a model for other countries to follow, and by promoting regional economic integration and cooperation.