Kashat: Navigating the Uncertainties of the Egyptian Fintech Market

Karim Nour, the founder of Kashat, an Egyptian nano-lending fintech company, is contemplating how to manage the growth of his startup. Over the summer of 2022, Kashat's loan disbursements had grown by nearly 40%, fueled by macroeconomic instability in Egypt. However, economic uncertainty had also deterred investors from investing in the region. Nour soon began to realize he did not have the funds to maintain the company's rapid growth, in fact, he may not even have the capital to keep the company running. The case explores Nour's journey as he grapples with the concept of 'hibernating' the company, halting lending operations and preserving Kashat's invaluable data algorithm. Within the case, Nour weighs the risks of hibernating versus holding out for funding as he prepares to meet with Kashat's board. He also considers the possibility of being acquired as a means of continued survival for Kashat.