June 30, 2023
by Agel, an innovative Islamic invoice financing startup based in Egypt, has successfully closed an undisclosed seven-figure pre-seed funding round to propel its growth and introduce customized, digital, cashless, and Sharia-compliant financing products. Among the offerings is Murabaha, a cost-plus financing model that aligns with Islamic principles.
Founded in October 2021 by Abdelrahman Saeed and Ahmed El Sherbiny, Agel empowers merchants by providing them with on-credit financing to procure goods and supplies from its extensive network of industry-focused suppliers. Simultaneously, it assists suppliers in boosting their sales by enabling them to offer goods on credit and effortlessly manage their commercial transactions through the app. In its first year of operation, Agel targeted Egypt’s US$15 billion annual textiles industry, creating the largest fashion-focused network of suppliers. The company has plans to diversify its offerings to serve other profitable industries.
The funding round was led by Plus Venture Capital (+VC), Seedstars International Ventures, and Flat6Labs, with additional participation from SEEDRA Ventures, Banque Misr, and prominent angel investors. Agel’s CEO, Saeed, expressed pride in being backed by such notable regional investors who not only provide financial support but also invaluable industry knowledge and experience. This backing will help Agel achieve its objectives and elevate its operations to new heights.
With the newly acquired funds, Agel aims to transform into a licensed non-banking financial institution, accelerate advanced product development to cater to its rapidly growing customer base, and expand its presence to major cities across Egypt. Additionally, the startup plans to launch a merchant co-branded banking card service in partnership with Abu Dhabi Islamic Bank (ADIB) and introduce other value-added services.
Hasan Haider, Managing Partner at +VC, expressed excitement about investing in Agel and acknowledged the significant growth potential of the startup. He emphasized that Agel addresses the limited financing options for Micro, Small, and Medium-sized Enterprises (MSMEs) in Egypt, offering a powerful and innovative solution with quick and easy Sharia-compliant payment options. As Agel continues to enhance its platform capabilities and expand its services to major cities in Egypt, +VC looks forward to supporting the company as a pioneer in the Islamic FinTech space.
