One Finance Launches Integrated Consumer Financing In Egypt
The Egypt-based financing platform fulfils the needs of Egyptian consumers from one place, to facilitate the financing experience.
One Finance has launched Buy Now, Pay Later in the country with an issued and paid capital worth USD 5 million.
One Finance aims to serve consumers by offering integrated consumer financing solutions for different purchasing power, with bespoke programs tailored to individual needs with different repayment methods. It offers an interval financing limit starting from USD 508 and up to a maximum of USD 305 thousand, one of the highest credit limits among operating companies in the market, along with various payment plans and facilities, and convenient instalment plans up to 84 months.
The company stated that it offers a new unprecedented business model to address different socioeconomic strata and suit their financing abilities. One Finance is working towards boosting consumer financing services in Egypt, within the framework of the country’s 2030 vision. The volume of consumer finance services has reached about USD 762 million and is expected to increase to USD 2.5 billion by 2026. One Finance is targeting a market share of 12%, as part of its 2026 vision.
The company has worked in diverse financing services including consumer goods and services, household appliances and durable goods, auto loans, education fees, home finishing, and other sectors vital to Egyptian consumers in order to meet their demands. One Finance has launched Buy Now, Pay later business model in the country with an issued and paid capital worth USD 5 million.
The economic volatility the world is currently undergoing, its implications on the local economy, and its direct impact on the purchasing power of individuals, have increased the need for consumer financing services as a secure option to support consumers’ purchasing needs. This translated to an increase in demand in the sector, to hedge against the risks of lack of liquidity, especially in light of continuous price hikes and increases in consumer spending, making it a tool to fill consumption and living financing gaps.
One Finance obtained the consumer finance license from FRA in April 2022 and the company is partly owned by Ayady for investment (40%), Tamweely (30%), and Post for Investment (30%). The company targets a portfolio size of USD 2 million by the end of 2022 and a portfolio size of USD 76 million in 2023, which will be self-financed through shareholders as well as bank facilities. It has already granted USD 10 million worth of financing in 4 months.
One Finance has a significant expansion plan, as it aims to establish a strong presence across Egyptian governorates to reach a large base of customers and support their financing needs. By 2023, it aims to have 90 points of sale, including 16 full-fledged branches. By the end of 2022, a total of 8 branches are scheduled to open in the governorates of Cairo, Giza, Ismailia, Tanta, Shebin El-Kom, Kafr El-Sheikh, Assiut, and Minya.