In order to launch customized, digital, cashless, and Sharia-compliant financing products, including Murabaha, a cost-plus financing model that complies with Islamic principles, Egyptian Islamic invoice financing startup Agel has closed an undisclosed seven-figure pre-seed round of funding.
Abdelrahman Saeed and Ahmed El Sherbiny founded Agel in October 2021 to provide merchants with the financing they need to purchase the goods and supplies they need for their business on credit from its industry-specific network of suppliers.
By enabling suppliers to sell on credit and managing their business transactions easily through the app, it also helps suppliers increase their sales. Agel established the largest suppliers’ network that is fashion-focused in its first year of business by tapping into Egypt’s $15 billion annual textiles industry. The business intends to expand its product line into additional lucrative sectors.
It will accomplish this with the aid of an undisclosed seven-figure pre-seed round of funding that was organized by SEEDRA Ventures, Banque Misr, and well-known angel investors and led by Plus Venture Capital (+VC), Seedstars International Ventures, and Flat6Labs.
“We are proud to be backed by prominent regional investors, who offer not only financial support but also invaluable industry knowledge and experience. Their confidence in our business model will enable us to reach our objectives and take our operations to the next level,” said Agel CEO Saeed.
The recently acquired funds will be used to develop Agel into a registered non-banking financial institution, quicken the development of cutting-edge products to serve its quickly growing customer base and increase its presence in Egypt’s major cities. In collaboration with Abu Dhabi Islamic Bank (ADIB), Agel will also introduce other value-added services and a merchant co-branded banking card service.
“We are excited to have invested in Agel, which has great potential for growth. While limited financing options remain a constraint to MSMEs in Egypt, Agel is a powerful, innovative solution for quick and easy Sharia-compliant payment options. As Abdelrahman and his team work to deepen their platform capabilities and expand their services to major cities in Egypt, we look forward to supporting them as they cement their position as pioneers in the Islamic FinTech space,” said Hasan Haider, managing partner at +VC.