Fintech startup Cassbana has secured a $1 million seed round funding led by Disruptech, an Egyptian fintech-focused VC.
Founded in 2020 by Haitham Nassar (CEO and Founder), the startup is creating financial identities for various sets of individuals who don’t use traditional banking services.
Cassbana carries out its operation by providing lending solutions to different users and then leverages artificial intelligence and other technological tools to allocate credit scores to them.
Summarily, the startup makes use of short quick loans, users’ behavioral data and machine learning to create financial identities for users.
Cassbana’s first set of people it worked with are the small-scaled retail enterprises such as clothing and grocery stores.
The startup offers them inventory financing via collaboration with different distributors so that users won’t pay any money during transactions.
Cassbana pays the money involved during the time of transaction while it later gets paid off by the business owner in installments.
The business owners can always request their financing while making payments of their installments via the startup mobile app.
When the business owners make their payment on time, they improve their credit scores, thus increasing their limit of obtaining inventory financing.
Presently, the startup now has 20 distributors across the country from the initial one it had in June 2020.
Beyond the retailers the startup is serving, Cassbana plans to launch a lending solution for customers of these retailers in 2021 second quarter.
The launch will enable customers of these stores to do a buy now pay later for masses.
The retailers would then obtain payments from the startup who would eventually receive the money from the customers later.
In a statement by the CEO and Founder: “We aim to establish financial identities for those dealing with institutions and service providers contracting with us, in order to enable these clients to obtain financial services, whether to grow their business or bypass any unaccounted risks.
Without this financial identity, many suffer from uncomfortable and expensive options for obtaining financial services or no options at all.”
Indications show that a significant portion of North Africa’s country population is unbanked, thus they have no access to financial services.
The startup is bridging this gap by creating financial identities for this set of people.
According to the founder, the startup plans to create financial identities for one million customers by the end of 2021.
Cassbana plans the secured funding for an expansion of its operation
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