Egyptian FinTech Khazna secures $16M to transform banking access & expand into Saudi 🇸🇦🏦; Elon Musk's 𝕏 rebounds and investor confidence is surging 😳💸; Paysafe to go private?! 👀💰

You're missing out big time... Weekly Recap 🔁

👋 Hey, Linas here! Welcome back to a 🔓 weekly free edition 🔓 of my daily newsletter. Each day I focus on 3 stories that are making a difference in the financial technology space. Coupled with things worth watching & most important money movements, it’s the only newsletter you need for all things when Finance meets Tech.

If you’re not a subscriber, here’s what you missed this week:

1. The ultimate list of resources for building and scaling billion-dollar companies 🦄 [1,500+ pages of knowledge, data, and advice to launch & scale your next unicorn startup in 2025]

2. AI 100: Top Artificial Intelligence Startups of 2024 🤖💸 [these companies raised $28B already. Find whose backing them, unlock their exclusive pitch decks & learn from the best]

3. 11 Finance & General Purpose AI Agents You Should Try 🤖 [discover the next generation of automated intelligence for money management, data analysis, and beyond]

4. Visa’s Q1 2025: digital payments juggernaut shows accelerating growth despite FinTech disruption fears 😤💳 [breaking down their latest numbers, what they mean & what’s next + bonus deep dive into Mastercard & co]

5. PayPal's strategic reset shows promise, but market share concerns overshadow progress 🤔📊 [deeper dive into their Q4 2024 financials, what they mean, what’s next & whether PayPal is worth your time and money in 2025]

6. Fiserv’s Q4 2024: a FinTech powerhouse hitting its stride with strong execution and expanding margins 😤💳 [breaking down their key Q4 2024 numbers, what they mean, what’s next & whether Fiserv is worth your time and money in 2025 & beyond]

7. AI revolution is going to reshape the global banking landscape in 2025 🤖🏦 [breaking down the latest report & key insights on AI in banking, what’s next and where to focus + bonus dives into banks that are leading in AI today & AI agents and startups worth checking out right now]

8. Nasdaq's digital transformation bears fruit, but valuation remains concerning 🤔📈 [a closer look at their Q4 2024, why valuation is a concern here + what to expect next]

9. Visa’s strategic push into account-to-account payments signals industry evolution 💳🤖 [what it tells us & what can we expect next + bonus deep dive into Visa & their latest financials]

10. The Ultimate Collection of Profit & Loss Statement Templates 📊 [supercharge your financial tracking & scale your profits]

11. Global 6,200+ Investor Database to Fast-Track Your Funding in 2025 💸 [shorten your fundraising time, find your perfect investors, and close rounds faster]

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As for today, here are the 3 incredible FinTech stories that were changing the world of financial technology as we know it. This was yet another wild week in the financial technology space space so make sure to check all the above stories.

Egyptian FinTech Khazna secures $16M to transform banking access and expand into Saudi Arabia 🇸🇦🏦

The news 🗞️ Khazna, an Egyptian FinTech startup founded in 2019, has secured $16 million in pre-Series B funding, bringing its total funding to over $63 million.

The company has established itself as a significant player in Egypt's financial inclusion landscape by providing essential banking services to underserved populations, particularly those earning below the minimum wage.

Let’s take a quick look at this.

More on this 👉 The company has demonstrated impressive growth, expanding its user base to 500,000 customers, with 100,000 receiving their salaries through the platform. Khazna's core business model revolves around providing financial services such as salary advances, digital payments, and micro-loans, particularly targeting low and middle-income workers who have traditionally lacked access to conventional banking services.

A notable achievement for Khazna has been reaching profitability through its lending products, which serve both payroll customers and gig economy workers. The company has successfully integrated various financial services, including bill payments, buy now, pay later options, medical insurance, and rent-to-own products.

Future outlook 🔮 Looking ahead, Khazna is pursuing two significant strategic initiatives. First, the company is working to obtain a deposit-taking license from Egypt's Central Bank by mid-2026, following new regulatory frameworks introduced in July 2024. This license would allow Khazna to accept customer deposits, potentially reducing its borrowing costs and enabling more competitive lending rates.

Second, Khazna is expanding into Saudi Arabia, where it aims to capture 40-50% of its business within the next four years. The company plans to differentiate itself from existing BNPL providers by offering medium-term financial products, including earned wage access, payroll-backed lending, and pension-based credit.

✈️ THE TAKEAWAY

What’s next? 🤔 At the core, this development signals a significant shift in the Middle Eastern financial services landscape. Khazna's expansion strategy, particularly its pursuit of a banking license and entry into Saudi Arabia, could serve as a blueprint for other FinTech companies in emerging markets. The company's focus on medium-term credit products, rather than just short-term solutions, suggests a maturing FinTech sector that's moving beyond quick-fix financial solutions to more sustainable banking alternatives. This could lead to increased competition in the traditional banking sector, potentially forcing conventional banks to innovate and better serve underbanked populations. The Saudi expansion is particularly significant given the large Egyptian expatriate population and the substantial remittance corridor between the two countries. If successful, this could create a new model for regional financial integration, combining traditional banking services with modern FinTech solutions. It will be interesting to follow Khazna's journey going forward.

Elon Musk's 𝕏 rebounds and investor confidence is surging 😳💸

Following the money 💸 Wall Street banks have just achieved a significant milestone in selling $5.5 billion of debt related to Elon Musk's acquisition of 𝕏 (formerly Twitter), marking a turning point in one of the most challenging acquisition financings in recent years.

The debt was sold at 97 cents on the dollar, significantly higher than the 60 cents offered by hedge funds in 2023, demonstrating renewed investor confidence in the social media platform.

Let’s take a quick look at this, see why it matters, and what’s next.

More on this 👉 The sale's success was driven by several key factors. First, 𝕏's financial health shows signs of improvement, with the company reporting 2024 adjusted EBITDA of approximately $1.25 billion and annual revenue of $2.7 billion. Not too shabby!

Second, the company's growing connection with xAI, Musk's artificial intelligence venture valued at $50 billion, has strengthened investor confidence. 𝕏 now holds a 10% stake in xAI, valued at around $5 billion.

Zoom out 🔎 The transaction provides much-needed relief for the banking consortium led by Morgan Stanley MS 0.00%↑, Bank of America BAC 0.00%↑, and Barclays.

However, these institutions still hold approximately $6 billion in additional debt considered even riskier than the recently sold loans. The debt carries an interest rate of about 11%, with yields exceeding 12% when accounting for the discount.

Looking at the bigger picture, this transaction represents a crucial vote of confidence for 𝕏 from institutional investors, potentially paving the way for future capital raising efforts. The platform's integration with xAI suggests a strategic pivot toward artificial intelligence, which could create new revenue streams and technological advantages.

✈️ THE TAKEAWAY

What’s next? 🤔 First and foremost, this is all about the efficiency. Since buying 𝕏, Elon Musk has improved its EBITDA margin from +13% to +46% while revenue has nearly halved. On HALF the amount of revenue, Elon Musk’s 𝕏 is now generating double the amount of EBITDA. This means that if 𝕏's revenue rises back to $5 billion, it would generate ~3.5 TIMES more EBITDA than it did before the acquisition. Efficiency is an understatement here. Looking at the bigger picture, this transaction demonstrates that despite initial skepticism, sophisticated investors are willing to bet on the convergence of social media and artificial intelligence, particularly when backed by established tech entrepreneurs. The successful debt sale may thus mark the beginning of a new chapter for 𝕏, as it transitions from a traditional social media platform to a more diversified technology company.

ICYMI: Elon Musk’s 𝕏 partners with Visa, marking a major step towards the Everything App vision 😳💸 [what it’s all about, why it matters & what’s next for 𝕏 Money + bonus deep dives into Elon’s grand vision for the Ultimate Super App]

Paysafe to go private?! 👀💰

The news 🗞️ Online payments giant Paysafe is exploring a potential sale following unsolicited takeover interest. The London-headquartered company, which processes credit cards, cash, and direct debit transfers online, has engaged financial advisers to evaluate strategic options, including the possible divestiture of non-core assets before any transaction.

Let’s take a quick look at this.

More on this 👉 The news sparked investor interest, with Paysafe's shares surging up to 22% on Thursday, settling at a 12.3% gain and valuing the company at approximately $1.4 billion.

However, this valuation represents a dramatic decline from the company's $9 billion enterprise value when it went public through a merger with Bill Foley's Special Purpose Acquisition Company (SPAC) in 2020.

Backed by private equity giants Blackstone and CVC Capital Partners, Paysafe's strategic review comes at a crucial time for the digital payments industry. The company offers a comprehensive suite of payment solutions, including digital wallets and prepaid cards, yet has struggled to maintain its market position in an increasingly competitive landscape.

✈️ THE TAKEAWAY

What’s next? 🤔 At the core, the potential sale could signal a broader trend of post-SPAC companies seeking private ownership as a means of strategic repositioning. For the FinTech industry, this move might accelerate consolidation, particularly among companies that went public during the SPAC boom and are now facing valuation pressures. Zooming out, the situation highlights several key industry dynamics. First, it demonstrates the challenges faced by SPAC-merged companies in meeting public market expectations. Second, it underscores the growing appetite for strategic acquisitions in the payments sector, where scale and technological capability are increasingly critical for success. Finally, it suggests that private equity firms and strategic buyers may see an opportunity in the current market environment to acquire FinTech assets at attractive valuations. And for Paysafe specifically, the next few months will be crucial. While the company explores its options, including potential asset sales, the outcome of this process could set a precedent for other struggling fintech firms. Success in finding a buyer at an attractive price could encourage similar moves by peers, while a failed process might force the company to pursue alternative strategic initiatives to rebuild shareholder value.

ICYMI: Paysafe: a payments phoenix rising from the ashes. But can it soar? 🤔📈 [breaking down the key numbers, strategic outlook & what’s next for Paysafe + a collection of bonus deep dives into FinTech stocks you can’t afford to ignore]

🔎 What else I’m watching

• Kraken Debuts Global Crypto Payments 🌐 Kraken has introduced Kraken Pay, a service enabling users to send over 300 fiat and digital currencies globally for free. Users can send funds using a unique @Kraktag identifier and a paylink URL via messaging services. Recipients need a Kraken account to receive payments. The service also converts assets, such as Bitcoin to Swiss francs.

• TransferGo Launches B2B Multi-Currency Account 💼 TransferGo has introduced a multi-currency business account for UK and EU-based global businesses. The account aims to address high fees, complex currency exchanges, and slow delivery times. Features include competitive exchange rates starting at 0.35%, localized payments with individual IBANs, and a unified financial platform.

• MicroStrategy Rebrands as 'Strategy' 🍊 MicroStrategy MSTR 0.00%↑ has rebranded to Strategy to emphasize its bitcoin focus. The new brand features orange as its primary color, symbolizing energy, intelligence, and Bitcoin. Strategy holds 471,107 bitcoins worth around $44 billion. The rebranding reflects the company's evolution and commitment to Bitcoin and artificial intelligence.

💸 Following the Money

• German Banking-as-a-Service platform Solaris has secured a €140M financing round.

• Worldpay has acquired Ravelin, an AI-native fraud prevention platform, to optimize its portfolio of solutions and deliver more value to customers.

• India's Cashfree Payments has raised $53M in a funding round led by Korean digital entertainment platform Krafton, alongside existing backer Apis Partners.

👋 That’s it for today! Thank you for reading and have a relaxing Sunday! And if you enjoyed this newsletter, invite your friends and colleagues to sign up: