Egypt’s non-bank consumer finance provider, Contact Financial Holding, has funded $9 million in Wasla, Egypt’s e-commerce super-app, paving the way for the launch of new online shopping capacities, products, and regional development.
Contact has been in the consumer financing sector since 2001, whereas Wasla was launched in 2018 by ex-Rocket Internet founders Serag Meneassy and Taymour Sabry, as well as investment banker Mahmoud El Said.
Hazem Moussa, chairman at Contact Financial Holding explained, “It’s an equity investment through a succession of transactions that aim to grow the firm, to facilitate their business plan and their attainment of the company’s objective.”
The e-commerce site is currently preparing to launch a number of new products and services, including BNPL financing and a new digital payment option.
Wasla’s browser-based experience includes a deal finder that gathers discount coupons and cashback links from a network of vendors.
As it continues to develop additional functions for a better end-to-end shopping experience, it plans to introduce a price-comparison tool.
El-Said, co-founder and CEO of Wasla made a statement: “We want to develop a very secure payment option by time or value…during the checkout phase.
“The third step is to directly integrate finance or buy-now-pay-later solutions into that. From search and discovery to finance, it’s an end-to-end e-commerce experience.”
Because Egypt is already a primarily cash-on-delivery industry, the new payment option is designed to motivate shoppers to transact online, which El-Said described as a “costly operation for retailers.”
Buyers will pay more for offline payment because it includes a cash-on-delivery fee.
Contact (formerly Sarwa Capital) will use its customer finance and technology expertise, particularly its enhanced credit services system, to assist Wasla in extending funding to customers.
Contact is one of the first financial services companies in Egypt to implement modern credit rating and collection techniques, according to reports.
Wasla boasts 1.5 million downloads and has grown its total e-commerce traffic by 8.5 times year over year since its debut. It brings together offers from over 100 local and regional e-commerce retailers.
Wasla has already acquired $1.2 million in funding from a variety of investors, including Ventures and Glint Consulting, prior to this disclosure.
Egypt’s e-commerce business is predicted to have earned $5 billion in revenue last year, with the sector expected to grow at a 22 percent annual growth rate over the following four years.
Souq.com, btech, and lcwaikiki are among Egypt’s major e-commerce businesses, with net sales of $109 million in the Country last year.
Having secured this funding, Wasla’s plan to scale and expand into other regions is not far-fetched.
Hopefully, they can replicate the same level of success in other African countries with an open and ready market.
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