Islamic FinTech in Egypt, Agel has announced that the company has successfully closed the pre-seed round for undisclosed seven-digit figures.
The investment round was led by leading MENA-focused venture capital firms, Plus Venture Capital (+VC), Seedstars International Ventures, Flat6labs, with participation from SEEDRA Ventures, Banque Misr, and prominent angel
investors.
The company is aiming to provide customized, digital, cashless, and Sharia-compliant financing products, including Murabaha, a cost-plus financing model that complies with Islamic principles.
Agel’s strategy revolves around empowering merchants with the financing needed to acquire the goods and supplies required for their trade on-credit from its industry-focused network of suppliers. It also assists suppliers in increasing their sales by allowing them to sell on-credit and managing their commercial
transactions effortlessly through the App.
Commenting on their recent round, Agel CEO Abdelrahman Saeed, “We are proud to be backed by prominent regional investors, who offer not only financial support but also invaluable industry knowledge and experience,” said. “Their confidence in our business model will enable us to reach our objectives and take our operations to the next level.”
Commenting on the fundraising announcement, Hasan Haider, Managing Partner at +VC said: “We are excited to have invested in Agel, which has great potential for growth. While limited financing options remain a constraint to MSMEs in Egypt, Agel is a powerful, innovative solution for quick and easy Sharia-compliant payment options.
As Abdelrahman and his team work to deepen their platform capabilities and expand their services to major cities in Egypt, we look forward to supporting them as they cement their position as pioneers in the Islamic FinTech space.”
Seedstars International Ventures, General Partner, Patricia Sosrdojojo remarked, “Despite the fintech startup boom in Egypt, a lack of access to finance is still recognized as a key obstacle to the MSMEs in Egypt. In fact, loans to MSMEs account for only 6% of the total loan portfolio of Egyptian banks, well below the 10-30% required and below the MENA’s (8%).
By digitizing the lending and procurement process for informal SMEs, Agel is bringing efficiency and increasing accessibility in this market. We are happy to partner with the entire Agel’s team as they bring the complementary and needed skills to execute such a plan successfully“.
