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Egypt’s Mnzl raises $3.5 million for its asset-backed lending platform
Startups

Egypt’s Mnzl raises $3.5 million for its asset-backed lending platform 


Egyptian asset-backed lending platform Mnzl has raised $3.5 million in a funding spherical led by Africa-focused VC companies P1 Ventures and Ingressive Capital, and London-based Localglobe, it introduced in an announcement in the present day. The spherical was additionally joined by 500 International, Flat6labs, First Circle Capital, Enza Capital, Beenok, and a few angel buyers.

Mnzl was based in 2023 by Sameh Saleh who beforehand based and led Harmonica, an Egyptian matchmaking platform that was acquired by Match Group in 2019 and was later rebranded to Hawaya, earlier than shutting down in 2023.

(500 International (beforehand often known as 500 Startups) and Flat6Labs, who joined this spherical, had been buyers in Sameh’s earlier startup as properly.)

Sameh has joined forces with Ahmed Dessouky, who has beforehand led engineering groups at a number of European startups, and Bassem Elshaer, who brings product expertise from numerous main monetary establishments in Europe.

Mnzl, obtainable as an Android and iOS app, permits customers in Egypt to leverage their property — properties or automobiles — as collateral to use for loans. These loans that are commonly known as secured loans (as they’re backed by an asset) may be requested and acquired in Mnzl’s digital pockets by finishing the whole course of on-line. The web site doesn’t have any particulars on the phrases or mortgage sizes, however a calculator obtainable on it signifies {that a} person who owns a automotive value EGP 500,000 (USD 10,500) and month-to-month earnings of EGP 25,000 (USD 525) can borrow as much as EGP 325,000 ($6,830) from the platform.

“Since you are tapping into your personal property, you’ll be able to withdraw bigger quantities, for decrease prices, with extra versatile phrases,” notes the web site, including that they assure to satisfy a buyer’s financing wants within the shortest doable time.

“In Egypt, lower than 10 p.c of adults have accessed credit score from monetary establishments, most of these loans are unsecured, which by nature comes with a really restrictive entry, or a a lot larger price. This example displays a broader pattern throughout Africa, the place a scarcity of secured lending choices contributes to excessive rates of interest and restricted entry to nearly all of the inhabitants. Mnzl goals to faucet into this substantial market by introducing a revolutionary pockets idea that permits asset homeowners to leverage their property and automobiles simply and securely to satisfy their financing wants,” said the startup in an announcement.

In response to its web site, Mnzl affords each standard and Islamic lending merchandise.

The startup claims to have secured the required permits from the Monetary Regulatory Authority of Egypt and has already gained some traction.

Sameh Saleh, the co-founder and CEO of Mnzl, commenting on the occassion, mentioned, “By enabling Egyptians to securely harness their very own property—properties or automobiles—for monetary wants, we at Mnzl are going past a mere adjustment; it’s an entire revolution in credit score entry. This shift not solely empowers households by offering monetary leverage but in addition contributes to broader financial prosperity within the area.”

Hisham Halbouny, Managing Companion at P1 Ventures, feedback: “Mnzl’s method to leveraging tangible property for monetary companies is a game-changer, doubtlessly setting a brand new normal for lending not simply in Egypt however throughout rising markets.”

Yvonne Bajela, Companion at LocalGlobe, provides: “Mnzl is exactly the type of innovation that the monetary sector in Egypt wants. By unlocking the monetary worth of actual property, Mnzl is ready to empower hundreds of thousands of Egyptians, driving monetary inclusion and financial development in a method that has not been performed earlier than.”

Mnzl goals to make use of the funds to additional develop its know-how and market the product. Though the assertion doesn’t explicitly state it, it’s possible that they’ll fund the loans, at the very least for now, from this cash.


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