Egyptian fintech startup Cassbana, which utilises artificial intelligence (AI) to run a behaviour-based credit-scoring system, has raised a US$1 million pre-seed funding round to help it expand.
Founded last year, Cassbana uses machine learning and AI to offer financial identities for underserved and unbanked consumers, with its technology and data, sourced through an Android app, offering financial institutions and companies the opportunity to create innovative lending and financial support solutions by analysing consumer behaviour patterns.
The company launched its services on a trial basis with one service provider in Cairo in June, but now has more than 20 service providers in Cairo, the Nile Delta, and other cities.
The US$1 million pre-seed round was led by VC firm Disruptech, and featured some other fintech funds and angel investors. Cassbana will use the funds to grow its business and expand operations within Egypt. It plans to expand to Upper Egypt this month.
“Our goal is to create financial identities for the underserved and unbanked who cannot receive financing options from their suppliers and service providers to scale their small shadow businesses or to pass through a difficult time in their business journey. Instead of them being assumed to be a high default risk, our financial identities offer them a chance to receive different financing options with a low risk of default,” said Haitham Nassar, the startup’s founder and chief executive officer (CEO).
Mohamed Okasha, head of the Disruptech Fund, said he was happy to be leading the round.
“The Egyptian fintech ecosystem is one of the biggest worldwide; our role as a fund is to support fintech companies from the beginning all the way through local and international IPOs,” Okasha said.
“We have seen Cassbana’s teamwork ethic first-hand and their growth over the past six months has been massive. Disruptech admires their strategic vision both locally and internationally and this is why we chose to lead the company’s first investment round.”