Egyptian Islamic invoice financing startup Agel has closed an undisclosed seven-figure pre-seed round of funding to help it roll out customised, digital, cashless, and Sharia-compliant financing products, including Murabaha, a cost-plus financing model that complies with Islamic principles.
Founded in October 2021 by Abdelrahman Saeed and Ahmed El Sherbiny, Agel empowers merchants with the financing needed to acquire the goods and supplies required for their trade on-credit from its industry-focused network of suppliers.
It also assists suppliers in increasing their sales by allowing them to sell on-credit and managing their commercial transactions effortlessly through the app. In its first year of operations, Agel tapped into Egypt’s annual US$15 billion textiles industry, establishing the largest suppliers’ fashion-focused network. The company plans to diversify its offerings to other lucrative industries.
It will do this with the help of an undisclosed seven-figure pre-seed round of investment, led by Plus Venture Capital (+VC), Seedstars International Ventures, and Flat6Labs, with participation from SEEDRA Ventures, Banque Misr, and prominent angel investors.
“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 newly raised funds will be deployed to grow Agel into a licensed non-banking financial institution, accelerate advanced product development to cater to its rapidly increasing customer base, and expand its footprints to the major cities in Egypt. Agel will also launch a merchant co-branded banking card service in partnership with Abu Dhabi Islamic Bank (ADIB) and other value-added services.
“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.