EGYPT— MNZL, an Egyptian fintech startup, has raised US$3.5 million in seed funding to enhance its technology and scale operations, empowering more Egyptians.
The seed funding round was led by P1 Ventures, Localglobe, and Ingressive Capital – with additional funding from other investors such as Enza Capital, 500 Global, Flat6Labs, First Circle Capital, and Beenok.
With the new capital, MNZL plans to enhance technology and scale operations to empower more Egyptians. Egypt’s vast market potential and similar dynamics across the MEA region position MNZL as a pivotal player in the evolving landscape of global fintech.
The capital will allow MNZL to deploy its services to other regional countries.
“We are thrilled to support Sameh and the MNZL team as they build a transformative platform,” said Hisham Halbouny, managing partner at P1 Ventures.
“MNZL’s approach to leveraging tangible assets for financial services is a game-changer, potentially setting a new standard for lending not just in Egypt but across emerging markets.”
In Egypt, less than 10% of adults have accessed credit from financial institutions. Most of those loans are unsecured, which by nature comes with very restrictive access or a much higher cost.
This situation reflects a broader trend across Africa, where a lack of secured lending options contributes to high interest rates and restricted access to most of the population.
“MNZL is precisely the kind of innovation that the financial sector in Egypt needs. By unlocking the financial value of real assets, MNZL is set to empower millions of Egyptians, driving financial inclusion and economic growth in a way that has not been done before,” Yvonne Bajela, Partner at LocalGlobe, said.
MNZL was launched last year by Sameh Saleh, Ahmed Eldessouky, and Bassem El Shaer to help users access instant credit from selling their assets.
The startup has introduced a wallet concept to asset-backed lending, allowing home and car owners to upload their assets into a digital wallet and turn them into cash they can borrow for their needs.
By using MNZL, asset owners can upload their assets (cars, homes, etc.) into a digital wallet, which converts the value into liquid cash that can be borrowed during emergencies.
“By enabling Egyptians to safely harness the assets – homes or cars – for financial needs, we at MNZL are going beyond a mere adjustment; it’s a complete revolution in credit access,” MNZL co-founder Sameh Saleh said.
According to media reports, investment in Egyptian startups decreased 17% in 2023, totaling US$608 million across 90 deals.
However, fintech startups managed to secure US$12 million through 19 deals during the same period.
In a parallel development, Egypt-based fintech startup Swypex recently announced securing US$4 million in seed funding led by Accel, marking the US-based firm’s inaugural fintech investment in the region.
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