One Finance, the integrated consumer finance platform, announced the launch of its services in the Egyptian market with an issued and paid-up capital worth EGP 100M. For the first time in Egypt, the company is introducing an innovative buy-it-now-pay-later business model by creating an integrated consumer finance platform that serves the needs of Egyptian consumers from a single location to facilitate the financing experience. One Finance works in various finance services including consumer goods and services, appliances and durable goods, car loans, tuition fees, home finishing and other vital sectors for Egyptian consumers to to respond to their requests.
Tarek Elhousseiny, President of One Finance, said that the economic volatility currently facing the world and its implications on the local economy and its direct impact on the purchasing power of individuals, has increased the need for financing services at the consumption as a safe option to support consumers. purchasing needs. “This has translated into increased demand on the sector, to hedge against the risks of lack of liquidity, especially in light of the continued rise in prices and increased consumer spending; making it a safe and instrumental tool to bridge consumption and life financing gaps,” he said.
Elhousseiny added that the company offers an unprecedented new business model to address different socio-economic strata and adapt to their financing capabilities. “One Finance is working to strengthen consumer finance services in Egypt; as part of the country’s 2030 vision. The company’s shareholding structure includes significant and esteemed entities operating in the Egyptian market with an ambitious plan to serve this promising sector; supported by a seasoned Board of Directors, which includes distinguished leaders with diverse expertise in finance, retail, marketing and technology.
The volume of consumer finance services has reached around EGP 15 billion and is expected to reach EGP 50 billion by 2026. One Finance is aiming for a 12% market share, as part of its 2026 vision.
On his part, Hazem Madany, Vice President, Managing Director and CEO of One Finance, said that the company obtained the consumer credit license from the FRA in April 2022 and that the company is partly owned by Ayady for investment (40%), Tamweely (30%) and position for investment (30%). Madany pointed out that the company is targeting a portfolio size of EGP 400 million by the end of 2022 and a portfolio size of EGP 1.5 billion in 2023, which will be self-funded by shareholders as well as banking facilities. The company has already granted financing of EGP 200 million in 4 months.
“One Finance has an ambitious expansion plan, as it aims to establish a strong presence in Egyptian governorates to reach the largest customer base and meet their financing needs. By 2023, we are aiming for 90 points of sale, including 16 full-fledged agencies. By the end of 2022, a total of 8 branches are expected to open in the governorates of Cairo, Giza, Ismailia, Tanta, Shebin El-Kom, Kafr El-Sheikh, Assiut and Minya” , added Madany.
One Finance aims to serve the largest segment of consumers by offering integrated consumer finance solutions for different purchasing powers, with bespoke programs tailored to individual needs with different repayment methods. The company offers a funding limit range starting from EGP 10,000 and up to a maximum of EGP 6 million, the highest credit limit among operating companies in the market, as well as various payment plans and facilities , and convenient installment plans for up to 84 months.