Egypt's Khazna Acquires Pharos Consumer Finance to Expand Digital Lending

Egyptian fintech company Khazna has acquired Pharos Consumer Finance, securing a consumer finance licence that will allow it to expand regulated lending services to customers underserved by traditional banks.

The acquisition was completed earlier in 2026 but announced on 22 October. Khazna Capital, the fintech's investment arm, purchased Pharos Consumer Finance from Pharos Holding for Financial Investments. The companies have not disclosed the transaction value.

The deal gives Khazna access to a licence issued by Egypt's Financial Regulatory Authority (FRA), allowing it to expand its lending operations under its own regulated platform. The company has also started deploying credit facilities from financial institutions to support its lending activities.

Acquisition Opens Direct Lending Opportunities

Founded in 2019, Khazna provides digital financial services to consumers who have limited access to conventional banking and credit. Its products include salary-backed loans, pension-backed financing, earned wage access and buy-now-pay-later services.

The company has traditionally relied on partnerships with regulated financial institutions to deliver lending products. Acquiring Pharos gives it a licensed platform to expand its consumer finance operations while retaining its partnership-led business model.

Khazna uses a business-to-business-to-consumer (B2B2C) approach, working with employers and other organisations to reach customers. Salary and pension information helps the company assess borrowers' repayment capacity and manage credit risk.

The company has reported more than 500,000 users, including approximately 100,000 people who receive their salaries through its platform.

Egypt's Licence Restrictions Drive Acquisitions

The transaction comes as Egypt tightens access to new consumer finance licences. In February 2026, the FRA suspended applications for establishing and licensing companies offering consumer finance through fintech for one year.

The restrictions have increased the strategic value of existing licensed businesses, giving companies seeking to expand another option: acquiring an established lender instead of waiting for new licensing opportunities.

Khazna's acquisition reflects this approach, providing access to an existing regulated entity as it expands its lending operations. Other financial services companies in Egypt have also pursued acquisitions to strengthen their positions in consumer finance.

Credit Facilities Support Expansion

Khazna has begun using credit facilities from financial institutions following the acquisition, although it has not disclosed the value of the facilities or the volume of loans it intends to issue through the newly acquired business.

The company is targeting Egyptians who remain underserved by traditional banks, using its employer partnerships and salary-linked financial products to reach potential borrowers.

The acquisition gives Khazna a direct route into regulated consumer finance, while the size of its future lending operations will depend partly on the credit facilities it secures and the demand for its products.