Egyptian fintech MNZL raises $3.5m seed funding to scale its ‘secure’ lending service

Egypt-based financial technology startup, MNZL has raised $3.5 million in a seed funding round. The round was led by P1 Ventures, Ingressive Capital, and LocalGlobe, a venture capital company whose backing of other Fintech giants like Wise and Robinhood significantly bolstered the round and emphasised the universal appeal and potential impact of the startup’s innovative approach.

Additional support for the round came from 500 Startups, Flat6Labs, First Circle Capital, ENZA Capital, Beenok, and other angel investors.

The startup says the new funding will enable it to enhance its technology and scale its groundbreaking operations which leverages tangible assets for secure lending to empower more Egyptians. The startup also believes its offerings have the capacity to transform the lending landscape, not just in Egypt, but also the entire Middle East and Africa (MEA) region.

Speaking on P1 Ventures’ support for the round, Managing Partner, Hisham Halbouny, said the startup’s approach is an ultimate game-changer, emphasising that the venture was investing in the unique model.

“We are thrilled to support Sameh and the MNZL team as they build a transformative platform. 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,” Halbouny said.

MNZL’s game-changing financial service

MNZL was founded in 2023 by Sameh Saleh, Ahmed Eldessouky and Bassem El Shaer. The startup allows users to transform their assets like homes and cars into cash to fund their projects and needs.

In Egypt and indeed Africa, a great number of adults lack access to credit from formal financial institutions. Even when they do, most of those loans are unsecured, which means that by nature, they come with very restrictive access and usually at much higher costs. In essence, across Africa, there is a lack of secured lending options which in turn contributes to high interest rates and consequently very restricted access to the majority of the population.

The Egypt-based fintech is therefore looking to tap into this substantial market across Africa by introducing one of its unique offerings; a wallet that allows people who own assets like pieces of land, houses, cars, etc, to leverage their property and other assets easily and securely to meet their financing needs.

How this works is pretty unique. The startup has introduced a wallet concept to asset-backed lending, a concept touted as the first of its kind. This innovation allows people who own assets like homes, cars, etc to upload their assets into a digital wallet, and turn it into cash that they can borrow for their needs.

The startup says it has secured the necessary permits from the Financial Regulatory Authority (FRA) of Egypt. It also says it is already witnessing quite promising early traction in the market, which validates the demand for a more inclusive and accessible approach to credit like the one it offers.

Speaking about the startup’s mission, CEO, Sameh Saleh said the goal is not only to empower families but to also contribute to broader economic prosperity.

“By enabling Egyptians to safely harness their own assets—homes or cars—for financial needs, We at MNZL are going beyond a mere adjustment; it’s a complete revolution in credit access. This shift not only empowers families by providing financial leverage but also contributes to broader economic prosperity in the region,” he said.

The CEO had previously founded Hawaya, a startup which addressed critical social issues in the region. He successfully exited the startup following its high-profile acquisition by Match Group. His Co-founders, Ahmed and Bassem are tech leaders, each having over a decade of experience working in and leading engineering and product teams across Europe and Africa, notably with unicorns like Pleo and Trustpilot.

Speaking about the startup’s potential impact on the financial landscape of Egypt, Partner at LocalGlobe, Yvonne Bajela projects that the fintech would drive financial inclusion on a scale never before seen.

“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,” Bajela said.

See also: Egyptian HR-tech startup bluworks closes $1 million pre-seed round to enhance its products