Hollydesk, an Egyptian expense management platform, has secured $1 million in venture debt investment to scale its venture in Egypt, helping small and medium-sized businesses (SMBs) manage their daily spending.
In a statement released on Thursday, Hollydesk CEO Mahmoud Moussa confirmed the funding, expressing excitement about the possibilities it presents for the team.
“Our mission is to help small and medium-sized businesses focus on what they do best by streamlining their expense management processes.
“With this new funding, we can expand our reach and help even more companies across Egypt,” said Moussa.
What you should know
Holly desk, founded in 2020, offers a suite of tools that help businesses keep track of and manage their expenses, automate approval processes, and provide reports to examine spending trends.
Today, the Egyptian startup has already helped hundreds of companies save time, reduce fraud, and manage their expenses.
According to the CEO, the new funding will be used to expand Hollydesk’s offerings and reach more companies looking for efficient expense management solutions.
Why it matters
The $1 million investment testifies to the growing importance of expense management for small and medium-sized businesses, as well as the Mahmoud Moussa-led startup’s ability to provide innovative solutions to meet this need.
Understanding Venture Debt Investment
This is another way young companies and startups borrow money. The money can be from banks or other lenders who specialize in lending money to startups such as VCs.
How Venture Debts Work
Unlike traditional loans, venture debt is a special financial instrument because it doesn’t always require a company to put up something valuable as collateral, like a car or a house.
However, the amount of money a startup can borrow with venture debt depends on how much money they’ve already raised from investors.
Any startup that closes a Venture Debt usually have to pay back the loan within a few years, and they’ll have to pay interest on the loan.
One of the good sides of venture debt is that it can be a helpful way for startups to get extra cash to grow their business, idea or product.
