Cashew Payments, an instant digital finance platform providing consumers the possibility to buy products and pay later with flexible payment options, has raised $10M in funding.
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UAE’s Buy Now, Pay Later platform Cashew has secured $10M in a mix of debt and equity financing from local lender Mashreq Bank.
Founded in 2020, Cashew offers its services in the UAE and KSA through an app and a web-based platform.
The Fintech sector has had a phenomenal year in all Emerging Venture Markets in Q1’22, as recorded in our Fintech Q1 2022 Venture Investment Report. In UAE, the sector observed a 1,200% QoQ growth in funding and climbed one rank to become the most-funded industry in Q1’22. Buy Now Pay Later startups have been on an upward trajectory since the past year across EVMs with names like Tabby, PostPay in MENA, and Credpal and ThankUCash in Africa raising sizable investments. BNPL Tabby’s $54M extension Series B round propelled the FinTech sector in UAE to cross the $100M mark in the first three months of the year.
Access our suite of Q1 2022 Reports covering MENA, Africa, Pakistan & Turkey. Browse our latest and pick your data focus
Demand for buy now, pay later services, which allow consumers to order and take a product without immediately paying, has risen in recent years, driven by an increase in online shopping. The provider pays the merchant immediately and is paid back by the consumer in installments, typically only earning revenue from transaction fees charged to the merchant.
Cashew Chief Executive Ammar Afif told Reuters that Mashreq acquired "about 20%" of the start-up in the deal, which Mashreq Senior Executive Vice President Fernando Morillo said was mostly debt. Afif said he expected that to help propel growth, with Cashew targeting 5,000 merchants and 500K users by year-end. Transaction volume is expected to surge by at least 10-fold to $10M a month by year-end, up from $1M. Mashreq is predicting buy now, pay later transaction volumes in the UAE will increase by 60% to 80% in 2022 compared to last year.
The financing from Mashreq will allow Cashew to offer credit on larger purchases such as travel, education and healthcare with repayments spread out over longer periods. It will also help Cashew expand into Egypt.
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