Egypt’s Nexta to launch “next-gen banking” app with fresh $5M • TechCrunch
backAn Egyptian startup that plans to launch its banking app in the coming months has secured a $5 million investment from the eFinance Group, a state-owned company that provides digital payments solutions. Follow this news $2 million pre-seed round Nexta announced last March, which was led by early-stage Egyptian VC Disruptech.
Last year, Nexta obtained a temporary license from the Central Bank of Egypt (CBE) and will look to meet more requirements and fulfill certain obligations before obtaining final approval from the Central Bank of Egypt for the banking agent license it needs to launch its services in the country. Nexta will have a partner bank to handle settlements and act as an intermediary between it and the CBE – however, it will operate its cards and technology.
founded by Ahmed Hesham In 2021, Nexta wants to revolutionize the fintech scene in Egypt with its “Next Generation Banking” app and card. According to the company, Nexta Card will combine users’ existing payment cards, allowing for more easy money transfers, and spending tracking, among other features.
“We are trying to build the next generation of banking and provide a seamless user experience to the consumer. We want to make setup easy and immediate, card pooling, linking all your cards and many ways to deposit cash features,” TechCrunch co-founder and CEO said in an interview, adding that the company plans To generate revenue from exchange fees.” This is the first thing we start with beta launches, budgeting and spending tracking. And then we will add more features every month or quarter of features to solve the finer points of the Egyptians.”
Egypt is among the highest consumer spending markets across Africa. It is also one of the most cash-dependent markets in the region, which means that there is a huge opportunity for fintech companies to bring consumers to spend online by launching card services. Egyptians looking for new alternatives that do not include telecom-powered mobile wallets and digital channels from old banks can turn to Nexta and tildea Sequoia-backed fintech that announced last week an initial $20 million round.
Unlike Telda, which allowed registration from its yet-to-be-launched apps (it did not bode well with over 30,000 users after waiting about a year to use the app), Nexta has limited its waiting list for registration from its website, engaging them through content marketing ready to launch. Hisham refused to reveal the number of subscribers in the company’s waiting list.
Like Sabah, in an interview with TechCrunch last week, Hisham agrees that both consumer-facing fintech applications are ultimately competing with cash. “I think the competition is very healthy and thanks to Telda for the awareness it has given to consumers and taking the first step. The CEO added that the Egyptian market needs not just Telda and Next but four or five other players like us.
In a statement, Ibrahim Sarhan, Chairman and CEO of E-Finance, said the investment in Nexta is in line with Egypt’s digital transformation plan and Vision 2030, including the group’s plan to maximize its assets and investments by investing in financial technology. “Nexta is among the promising companies that the group finances among several targeted investments,” Sahar said. “It is worth noting that the group participated in the creation of Nclude – an investment fund – to invest in emerging fintech companies, thus improving the current and future trend of fintech in Egypt.”
Hesham, who describes this investment as a strategic partnership rather than a funding round, said Nexta is happy to have e-finance on board with the increased demand for financial services in Egypt. He said, “We believe there is a great opportunity for us to offer a distinct and distinct experience to various users in such a promising market.”
The return on investment will help Nexta prepare for its launch, hire talent, and invest in its technology.