Why We Invested in MNZL: Home & Car Equity Loans and Lines of Credit for Egyptians

In Egypt, there is a major challenge in accessing credit from formal financial institutions. Of the 68m adults in Egypt today, only 37m have access to a bank account and only 5.1m (7.5% of the total) have accessed credit through a bank.

The majority of lending is in the form of borrowing from friends and family, or from other very expensive sources. Many adults are excluded from all forms of borrowing altogether. This exclusive financial model prevents individuals from growing their financial wealth.

Despite these tight credit conditions, most Egyptian families own a major or significant asset. 76% of families own a home and there are 8 million cars in Egypt. These assets are a store of wealth which is currently underexploited. MNZL estimates the total value of these assets is approximately $2 trillion.

In the U.S., 70% of consumer borrowing is enabled through mortgages and backed by housing assets. This model of securing lending against verifiable, fixed assets helps to improve access and reduce the cost of credit for consumers. In Egypt, only 10% of total consumer borrowing ($30b) is secured against a housing or vehicle asset.

WHAT DOES MNZL DO?

MNZL is pioneering a new credit model which has potential to scale and include many underserved households and SMEs. This model was previously proven in other emerging markets which face similar constraints like lack of reliable data sources and large informal sector with one of success storied being Creditas in Brazil.

MNZL are expanding asset-backed financing to include more Egyptians while keeping default rates at a minimum. MNZL allows Egyptians to tap into their massive capital wealth (~2T$ property, and ~50B$ cars).

MNZL offer Home & Car Equity loans and Lines of Credit (HELOC), and make accessing funding via personal assets frictionless, simple, and quick.

WHY DID WE INVEST IN MNZL PRE-SEED ROUND?

1. Strong team: Experienced founding team who built, scaled ad exited technology business before, complemented by a credit-experienced board and management team.

2. Large market potential: Of the 68m adults in Egypt today, only 5.1m(7.5% of the total) have accessed credit through a bank, while 76% of families own a home and 8m cars are registered

3. First-mover advantage: MNZL is pioneering this innovative type of lending which was proven in other emerging markets like Brazil.

4. High calibre co-investors: P1 Ventures, Local Globe, 500Global and Flat6Labs