Cairo – Mubasher: Agel, the first and only Islamic fintech in Egypt, has successfully secured a pre-seed round for undisclosed seven-digit figures, according to a press release.
The funding round was led by MENA-focused venture capital firms that include Plus Venture Capital (+VC), Seedstars International Ventures, Flat6labs, along with SEEDRA Ventures, Banque Misr Acceleration Program, and key angel investors.
Agel will use the proceeds of the newly raised funds to become a licensed non-banking financial institution in Egypt. The fintech aims to reshape traditional financial services and provide alternative financing options to meet the needs of the micro, small, and medium enterprises (MSMEs) sector in the country.
Moreover, the company will partner with Abu Dhabi Islamic Bank (ADIB) and other value-added services to launch a merchant co-branded banking card solutions.
In its first year of operations, Agel tapped into Egypt’s annual $15 billion textiles industry, unveiling plans to diversify its offerings to other lucrative industries, contributing to $85 billion on an annual basis.
The company's growth aligns with Egypt's 2030 vision of financial inclusion as well as the UN's Sustainable Development Goals ( SDG).
Established in October 2021, Agel offers customised, digital, cashless, and Sharia-compliant financing products, including Murabaha.
Ahmed El-Sherbiny, Co-Founder and COO of Agel, commented: “Since we launched, we have witnessed a remarkably positive response from the merchants.”
El-Sherbiny added: “As we deepen our product capabilities, we are confident in introducing several more easy and convenient payment options to satisfy our clients. We look forward to establishing Agel as the preferred platform across Egypt and beyond.”
Patricia Sosrdojojo, General Partner at Seedstars International Ventures, highlighted: "Despite the fintech startup boom in Egypt, a lack of access to finance is still recognised 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%),” Sosrdojojo noted.
