MazAid: Funding Services at One Place
Updated 4/4/2023 8:00:00 AM
Arab Finance: In recent years, the fintech sector in Egypt has seen a substantial increase in investments and the number of startups. Customers grew more familiar with the lending and buy now, pay later (BNPL) providers. That wave is parallel to the inclusive Egypt Vision 2030 that paved the way for the boom in the sector. In the first half of 2022 alone, investments in lending and alternative finance reached $42 million, according to a report by FinTech Egypt, an initiative powered by the Central Bank of Egypt (CBE).
That is why Arab Finance has interviewed Abdullah Radwan, CEO and Co-Founder of MazAid, the first credit marketplace in Egypt, about the company’s financial services, plans, and achievements.
1- MazAid is Egypt’s first fintech aggregator. What inspired you to start MazAid?
Demand for financial services has been rising quickly over the past few years, and more Fintech providers are being founded to meet it, making it difficult for a wide range of individuals and businesses to decide which is best for them. MazAid is a fintech aggregator (also known as a credit marketplace), which aims to organize the ecosystem between lending companies, a highly fragmented customer base, and service providers. Thus, simplify customers’ and businesses’ journeys to access the market, compare financial products, select the suitable ones, apply, and get funded all within a one-stop-shop.
2- What are the services you offer to personal customers? And what are the criteria you depend on to approve their funding requests?
Being a credit marketplace, we capitalize on our ability to serve customers across numerous sectors and geographies, yet we focus on multiple strategic sectors including education, healthcare, home finishing, weddings, and tourism. As MazAid believes in its role to enhance financial inclusion, we have partnered with a wide network of lending companies that allows us to facilitate consumer financing requests and match consumers seamlessly with the right lending partner, increasing their acceptance rate with faster access to finance.
3- Can you explain to our readers how your customers can benefit from BNPL in your application? And what is the rate applied when using funding services?
With today’s macroeconomic conditions and rising inflation rates, demand for BNPL firms is higher than ever, and customers need solutions to elevate their purchasing power and support cash flow management. With rising inflation and costs for services and products, MazAid’s innovative Study Now, Pay Later, Care Now, Pay Later, and other BNPL solutions can lift the financial burden of bulk cash payments as well as enhance the purchasing power of consumers. We thrive on being able to offer the lowest possible rates; however, every consumer application is unique, and rates vary based on each of our licensed financial regulatory authority (FRA) lending partners and customer criteria.
4- MazAid also funds microbusinesses and small- and medium-sized enterprises (SMEs). What is the maximum amount of funding that they can get? And what are the criteria and the rate applied?
The amount of funding is based on every client's profile and the documentation he can provide to the lending company for his business application. As stated, we provide funding for MSMEs, so the starting point for any application is standard business documentation, such as a tax ID and a commercial register (CR).
5- What differentiates MazAid from banking funding services? What, for instance, would cause a business owner to choose MazAid over a bank to receive funding?
It is the same difference between making a direct reservation at one hotel versus using booking.com to access the whole market and comparing to find the best match. We stand out from the competition because of our quick, simple approach and ability to match every client's needs with the most suitable financial product.
6- When you started MazAid, what was the size of your investment compared to now? And can you shed light on the company’s financial performance?
We initially operated on our own resources, but as soon as we got going, the market and customers responded quite favorably, which enabled us to grow our network and customer base exponentially over the past year and secure small angel funding. Meanwhile, given the blessing from our potential investors, we will launch a funding round in the second half of the year.
7- How do you build a robust customer base, especially since Egyptians are not very familiar with digital payment and funding services? And do you take the appropriate legal steps when a customer fails on a loan?
Part of our mission is to enhance financial inclusion in line with Egypt's Vision 2030. In recent years, the number of financial service providers has grown significantly, besides the awareness of the Egyptian community. MazAid's essential role is to facilitate customers' access to financing products through licensed FRA non-banking financial service providers, and credit facility approval is the sole responsibility of our partners, including loan defaults or other relevant legal activities according to their policies. We remain at service, supporting customers and our partners at any given moment.
8- Recently, the Egyptian market has seen a significant increase in the number of companies funding individuals and businesses. How do you anticipate the market's development and the rivalry among them?
I anticipate strong rivalry since each company will try to distinguish itself and highlight its strengths. This is financially beneficial for Egyptian consumers because it will encourage businesses to offer more services to them.
9- In your opinion, would the market be able to support more fintech loan businesses or would these businesses fail?
With 67% of the population unbanked and increasing demand for financial services, the market can support more financial service providers. That being said, success relies on many factors, including the business model and product offerings. We encourage players in the ecosystem to focus on untapped segments within the market, where the need for innovative solutions is at its highest.
10- Would you like to highlight your accomplishments over the past year?
We were recently accepted into the AUC Venture Lab accelerator program and won Egypt’s round in the MENA Insurtech Association competition. We are thrilled to have received such recognition from across the ecosystem and are looking forward to pitching once again at the regional finals in Doha.
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