Astra Tech owned Quantix gets UAE's biggest financing for a fintech
Deal makes it biggest financing for any UAE based fintech to date
Dubai: An Astra Tech company has just bagged a $500 million financing support – and said to be the biggest for a UAE based fintech to date.
The funds for Quantix Technology Projects, the Astra tech entity, come from the US financial institution Citi. It will be in the form of an asset-backed securitization financing.
The funds will be used to support Quantix’s CashNow consumer lending platform. (Increasingly, fintechs are mirroring the roles that banks have played traditionally. These have typically started off with enabling remittance services, BNPL (buy now pay later) and now deeper into actual longer-term lending.)
Astra Tech, incidentally, also owns Botim, the voice and video messaging platform, and which has now been adding more features to the app, such as remittance features, micro-loans, etc.
"The deal with Citi is a pure debt play - there's nothing associated with equity or a future exit," said Dr. Tariq Bin Hendi, Managing Director of Astra Tech, to Gulf News. "This is our first financing, because whatever we've built through the years has been using our own capital. The $500 million positions Citi as our long-term strategic partner.
"This is only Phase 1 of our growth, given the potential that our operations have in expanding our services within an already established user base."
We've only scratched the surface with what we can do with the over 140 million users on our Botim Ultra app. Sure, there are the remittances, but that's still only 8-10%. There is so much more that will happen
Quantix, incidentally, was the first UAE-based fintech to receive a 'finance company license from UAE Central Bank'. "This financing will support Quantix’s growth and solidify Astra Tech as a leading fintech innovator in the Middle East," said a statement.
Astra Tech is transitioning itself into something of an uber-fintech, with regional and global aspirations. It's 'Ultra app integrates services such as payments, cross-border transfer, and financing solutions into a seamless ecosystem', the statement added.
"With over 140 million users globally, Astra Tech is poised to deliver a frictionless financial experience, connecting consumers to a full suite of services within a single app—a first in the region."
Nice pick up in fintech support
Recent months have seen that the UAE and Gulf fintech ecosystem is bustling along, with sizeable funding support to boot. It also negates views that some in the industry had aired about private equity and other funding not that readily available for regional fintechs any longer.
Just recently, Emirates NBD and Mashreq took equity in NewBridge Fintech Solutions, which owns LoanBook specializing in syndicated loans.
According to Bin Hendi, "This financing from Citi allows Quantix and AstraTech to expand the Ultra app ecosystem. Our vision is to build an all-in-one platform that simplifies and empowers consumers' financial decisions—whether it’s securing loans or managing everyday finances.
"This is just the beginning, as we continue to scale and redefine the future of financial services in the region.
Astra Tech is not seeking acquisitions to get us the growth we are targeting. Instead, our focus will be on partnerships or joint ventures wherever possible.