From the Nile to the Network: 12 Egyptian Fintechs Shaping the Industry

As the sun sets behind the iconic pyramids of Giza, a digital revolution is taking place across Egypt's bustling streets. In a country where half of its 100 million inhabitants wield smartphones, an incredible two out of three individuals remain without formal financial services. But this paradox has birthed a thriving fintech scene, one that's fast becoming the crown jewel of the Middle East. Indeed, eight of Forbes Middle East's top 30 Fintechs of 2023 hail from the land of the Nile, surpassing the likes of Saudi Arabia and the UAE.

The numbers are staggering. Egypt's FinTech industry amassed a record $259m in 2022, marking a robust 12.6% uptick from the previous year. Though deal activity witnessed a slight dip, in line with global trends, the average FinTech deal size surged by 46%. Fueling this powerhouse is a mix of fearless innovation, strategic investments, and a populous eager to leapfrog into a new era of financial accessibility.

Leading this charge is Paymob, a digital payments platform that clinched the largest fintech deal in Egypt last year, securing a whopping $50m in its latest Series B funding round. With novel payment methods and ambitious plans for expansion, Paymob encapsulates the daring spirit of Egyptian fintech. Paytech, indeed, has emerged as the most active fintech subsector, constituting 43% of total FinTech deals in 2022.

Beneath this seismic shift lies a staggering potential: the MENA region's youthful population holds $500 billion in annual savings, yet their exposure to the equity market and investment avenues remains minimal. Egyptian fintechs are keen to tap into this golden opportunity, with innovative companies mushrooming across the country, from 32 in 2017 to an impressive 177 in 2022.

Central to this fintech metamorphosis is Cairo, a city teeming with history, culture, and now, cutting-edge technology. The city accounted for 81% of fintech deals in 2022.

This rapid proliferation, as highlighted by the Central Bank of Egypt, stems from a growing demand for FinTech solutions, a development that's attracting a bevy of venture investors. But this is just the beginning. As the digital tides rise, Egyptian fintechs are well-positioned to transform the financial landscape, not just of their homeland, but potentially, of the entire Middle East and beyond.

Here are the trailblazing Egyptian fintechs shaping the industry.

Fawry

Founder: Ashraf Sabry

Ashraf Sabry identified a significant gap in the Egyptian market in 2007. Realizing the inconvenience people faced while paying bills, given the low banking penetration and the majority of the transactions being carried out in person, Sabry conceptualized Fawry as an electronic bill payment solution.

Fawry started operations in 2010, initially in two cities. It quickly won over consumers with its convenience and ease, attracting 400,000 customers in just six months. Sabry led Fawry through this rapid growth phase, introducing new features and expanding its services beyond bill payments to include banking, insurance, and B2B payments.

In 2019, Sabry steered Fawry to a landmark public listing that was oversubscribed by 30 times, cementing Fawry's position in Egypt's tech landscape. The following year, Fawry achieved a milestone, becoming Egypt's first tech unicorn.

Under Sabry's direction, Fawry now serves more than 49.4 million users and processes transactions worth $6.8 billion, continuing to shape the digital payments landscape in Egypt and beyond.

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MNT Halan

Founders: Mounir Nakhla and Ahmed Mohsen

MNT-Halan, an innovative digital banking service provider, was founded in Egypt in 2018 by Nakhla and Mohsen. They identified a unique opportunity to serve the vast unbanked population of Egypt. The initial concept of MNT-Halan was sparked in 2017 when they launched Halan as Egypt's first two- and three-wheeler ride-hailing and delivery app. Recognizing the potential of financial services, Halan then expanded into fintech, launching a digital wallet, bill payment services, e-commerce with buy now, pay later (BNPL) options, and micro, nano, and consumer loans.

In a significant strategic move, Halan entered a share swap agreement with Netherlands-based microlending company MNT in 2021. The result was the newly formed entity, MNT-Halan. This merger positioned MNT-Halan as the first fintech enterprise licensed to disburse micro, consumer, and nano financing. Nakhla's vision and leadership led MNT-Halan to become a unicorn in 2023 after securing over $200 million from Chimera Abu Dhabi.

AMAN Holding

Founders: Mohamed Wahby, Hazem Moghazi

AMAN Holding was established in Egypt in 2015 as a subsidiary of Raya Holding for Financial Investments, a Cairo-based investment conglomerate founded by Medhat Khalil. Serving a staggering 40 million customers monthly through 163 offices and 230 retail stores, AMAN offers an array of services such as e-payments, consumer finance, microfinancing, and SME services.

The company's transformative journey began under the guidance of its CEO, Hazem Moghazi, who spearheaded a $12.7 million investment to bolster AMAN's financial position and set it on a path of sustainable growth. This strategy has propelled the company into the forefront of Egypt's fintech landscape. By the end of 2022, AMAN had processed transactions worth $1.5 billion, launched a money market fund to support unbanked customers, and initiated a three-year $161.8 million securitization program.

AMAN's commitment to financial inclusion is seen in its focus on micro-financing small and medium-sized businesses. With over 80 micro-finance branches, 250 stores, and a network of 100,000 merchants, AMAN has funded more than 70,000 clients. The firm also plans to make EGP3.2 billion ($168.8 million) in micro-financing available to clients in the form of small working capital loans. These efforts, coupled with AMAN's future expansion strategies, make it a true trailblazer in Egypt's fintech sector.

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MoneyFellows

Founder: Ahmed Wadi

MoneyFellows, an innovative fintech startup, was founded in 2017 by Ahmed Wadi, a computer engineer with a vision to improve financial inclusion through leveraging cultural traditions. Inspired by his personal experiences with 'Gameyas' - traditional community lending circles - while a graduate student in Germany, Wadi conceived MoneyFellows to digitize this trusted form of peer-to-peer lending embedded within Egyptian culture. The startup faced early challenges in German and UK markets due to cultural unfamiliarity with the Gameya system. However, a strategic decision to launch in Cairo in 2016 resonated with the Egyptian market, effectively formalizing and digitizing a familiar tradition.

Under Wadi's leadership, MoneyFellows has flourished. The platform provides users with a seamless, secure way to create, monitor, and participate in online money circles. It extends financial access to the traditionally unbanked, allowing users to build their credit scores, thereby enhancing their eligibility for more substantial lending opportunities. Today, MoneyFellows caters to over half a million users, and in 2022, the total value of money circles managed by the company quadrupled from the previous year. Notably, the company has attracted significant investment, raising a total of $38 million, including a $31 million Series B round in October 2022. Despite the obstacles, Wadi's resilience has seen the platform thrive and poised for potential global growth.

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Khazna

Founders: Omar Saleh, Ahmed Wagueeh, Fatma El Shenawy, and Omar Salah

Khazna, a Cairo-based fintech startup, was founded in 2019 by Omar Saleh, Ahmed Wagueeh, Fatma El Shenawy, and Omar Salah. The founders were compelled to improve the financial services landscape for the middle and lower-income populace of Egypt, who predominantly relied on cash transactions and informal credit arrangements. Recognizing the need for accessible and reliable financial services, the founders developed a suite of digital financial services to replace the cash-driven alternatives, focusing initially on employer credit as a gateway to financial services.

Saleh, an MBA graduate from Stanford, returned to Egypt with a vision of creating an impactful business. His personal experiences with the local banking system and the growing digital revolution in the country led him to co-found Khazna. Alongside his co-founders, Saleh successfully launched a digital financial services platform to provide short-term credit services, earned wage access, and direct bill payment services. The company later expanded into offering buy-now-pay-later services, creating a comprehensive financial super app that addresses the needs of Egypt's largely unbanked populace.

With a relentless focus on customer needs and digitization, Khazna has seen significant growth, even amidst the challenges posed by the COVID-19 pandemic. Their offering, the Khazna card, is the first co-branded prepaid card in Egypt linked to a digital service and has received approval from the country's regulatory authorities. By 2023, the company was serving over 150,000 active users, aiming to reach five million users in the coming years. Their successful venture has attracted investors, raising $38 million in Series A funding round from multiple investors, led by Quona Capital.

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Lucky

Founders: Momtaz Moussa and Ayman Essawy

Lucky is an Egyptian fintech startup founded by Momtaz Moussa and Ayman Essawy in 2018. Leveraging a vast merchant network and an array of app-based financial services, the company targets the Middle East and North Africa's "underbanked" population and merchants transacting primarily in cash. With over eight million registered users and the largest merchant network in Egypt, Lucky has exhibited remarkable growth, including a 250% YoY surge in gross merchandise value.

The company founders, both experienced entrepreneurs, recognized the gap in financial options available to tech-savvy young Egyptians, primarily functioning in a cash economy with limited access to credit. Lucky aims to bridge this gap by offering products like credit, cash accounts with rewards, bill payment programs, and pay-later features. With over 30,000 local and global partner brands, users can browse and redeem exclusive offers directly in-app. Despite the initial challenges presented by the COVID-19 pandemic, Lucky swiftly adapted to include online and delivery-focused stores, reflecting a strong commitment to customer-centric growth and adaptability.

In addition to its stronghold in Egypt, the company recently expanded into Morocco, furthering its mission to facilitate seamless shopping, saving, and payment experiences throughout the MENA region. This expansion was funded by a $25 million Series A round raised to enhance its credit capabilities and drive overseas growth. Revenue is generated through transaction fees from merchants and the financial products it provides to consumers. The company's robust growth, demonstrated agility, and adaptability to market demands have established Lucky as a significant player in the MENA fintech landscape.

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Telda

Founder: Ahmed Sabbah

Telda, a consumer money app based in Egypt, has raised $20 million in seed funding. The app was founded by former Swvl executive Ahmed Sabbah in April of last year with the aim of transforming finance in the Middle East, North Africa, and Pakistan (MENAP) region.

Despite high consumer spending in Egypt, the country is largely cash-based, with only 4% of its GDP being cashless. Telda aims to change this narrative by offering card products. Following some initial licensing issues, Telda recently received approval from the Central Bank of Egypt (CBE) to launch as a consumer money and payment app. It now offers an app and a Mastercard-powered card to the public, with 25,000 cards onboarded and a waiting list of 110,000 customers.

The funding round, which was led by existing investors Sequoia Capital and Global Founders Capital (GFC), and included participation from new investor Block (formerly Square), will help Telda in its mission to fully digitize the use and concept of money in Egypt. Sabbah emphasized the need for an intuitive user experience in banking and affirmed Telda's commitment to compete with cash transactions, which still dominate the MENA market.

The Egyptian fintech market has seen a significant rise in startups like Telda, Sympl, Lucky, and Khazna, which aim to provide financial services to the large proportion of the population with little or no access to formal financial services. With 50% of Egypt's 100 million population being active smartphone users, these companies see a significant opportunity to digitize financial transactions in the region.

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Blnk

Founders: Amr Sultan and Tarek Elsheikh

Blnk, an Egyptian fintech startup founded by Amr Sultan and Tarek Elsheikh in 2021, has successfully raised $32 million in pre-seed and seed funding rounds. The funding consisted of $23.7 million in equity and debt funding and an additional $8.3 million from securitized bond issuance.

Blnk operates a digital lending platform that allows merchants to finance customers' purchases at the point of sale, with installment plans ranging from six to 36 months. It facilitates swift access to credit using only a National ID, with the startup claiming to have already issued over $20 million worth of loans to more than 60,000 customers.

The funding round was led by Emirates International Investment Company and Sawari Ventures, alongside several local and international angel investors. Sultan, the CEO of Blnk, affirmed that this investment will help the company in driving financial inclusion across Egypt and the broader MENA region.

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Paymob

Founders: Alain El Hajj, Islam Shawky, and Mostafa El Menessy

Paymob was established in 2015 by Alain El Hajj, Islam Shawky, Mostafa El Menessy, and a team of dedicated young entrepreneurs. It was while studying computer science at the American University in Cairo that El Hajj began his journey into entrepreneurship. The idea for Paymob was conceived during an entrepreneurship course that El Hajj and Shawky were attending in 2015. At that time, fintech wasn't even a buzzword, yet they saw a tremendous opportunity in the evolving startup scene.

Starting their journey as undergraduates, they faced the challenges of young entrepreneurs head-on. Initially, their proposals were met with rejection by banks. Their persistence bore fruit in 2016, when, after 15 months of continuous rejection, they finally partnered with a bank that believed in their business model.

In the years that followed, Paymob's growth skyrocketed. One of the company's significant achievements was being chosen to build Egypt's digital wallet infrastructure, partnering with various entities including telecom operators and banks.

The journey of building Paymob was demanding and often lonely, as El Hajj notes, with the founders sacrificing much of their personal time to focus on the company. However, seeing the social and economic impact of their work and the improvement it brings to people's lives has been a significant reward. Today, Paymob has raised a total of $68.5 million, and it serves over 170,000 businesses and 18 million mobile wallet users across several countries.

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FlapKap

Founders: Ahmad Coucha, Khaled Nassef, Sherif Bichara and Adel Hodroj

FlapKap is a pioneering fintech company in the Middle East and North Africa (MENA) region, introducing the innovative model of revenue-based financing (RBF) to support the growth of e-businesses. Established in 2022 by co-founders Ahmad Coucha and Khaled Nassef, along with founding members Sherif Bichara and Adel Hodroj, FlapKap aims to alleviate the financial pressures associated with business expansion by offering clients the flexibility to settle their media expenses at a later date as a percentage of their future revenues.

The inception of FlapKap is closely tied to Coucha's earlier entrepreneurial venture, Kijamii, a digital advertising agency he co-founded in 2011. Later rebranded as GP&K, the agency evolved into one of the largest independent media networks in the MENA region. It was while observing the persistent issue of late payments and the resulting access to working capital problems faced by Kijamii's clients that Coucha recognized a need in the market. This, combined with insights gained while pursuing a master's degree in economics at Harvard, planted the seeds for FlapKap.

FlapKap's operations currently span Egypt, the UAE, and Turkey, with imminent plans for expansion into Saudi Arabia. The company's success has been underscored by consistent growth, with the number of merchants doubling each month since inception. This impressive progress has attracted significant investment, including a $1.2 million seed funding round from A15, a leading venture capital firm in the MENA region, and an additional $3.6 million seed funding round to accelerate its mission.

PaySky

Founder: Waleed Sadek

Founded in Egypt in 2017 by Waleed Sadek, a medical doctor turned fintech entrepreneur, PaySky is a digital payment solutions provider operating across 11 countries. It offers services to financial institutions, businesses, and individuals, with a notable role in establishing national payment gateways for various central banks in the Middle East and Africa (MEA).

PaySky made significant strides in 2022, partnering with Visa to launch the Yalla Card and the Yalla Super app, an all-in-one platform hosting over 30 mini-apps offering both financial and non-financial services. As of December 2022, the Yalla Super app had attracted over 2.5 million downloads, with more than 1.6 million active users.

Furthering its ambitious expansion strategy, PaySky introduced the Yalla Invest mini-app in February 2023, enabling users to invest in gold in increments as small as 0.25 grams. This marked another step in PaySky's mission to revolutionize digital finance and make it more accessible to the broader population.

Driven by a strategy that prioritizes agility and swift market response, PaySky's ethos is grounded in a deep understanding of the space in which they operate, a philosophy that Sadek suggests to anyone considering launching their own business. With Sadek at the helm, PaySky continues to deliver innovative solutions, advancing financial inclusion and promoting electronic payments across multiple markets.

Thndr

Foundrs: Ahmad Hammouda and Seif Amr

Thndr is an Egypt-based digital investment platform launched in 2020, enabling users to invest in Egyptian mutual funds, publicly listed companies, and the US stock market. Founders Ahmad Hammouda and Seif Amr report significant growth, with the platform's assets under custody growing 29x in 2021. Thndr now accounts for 36% of retail brokerage accounts opened across Egypt in 2021, with 87% of its users being first-time investors.

Thndr's user acquisition strategies include paid social media advertising and producing educational content that breaks down investing concepts. This approach has attracted a younger user base, with 80% of all new brokerage accounts opened by those under 21 years old. The app also includes a community feature for users to engage and exchange investment advice, closely monitored to prevent stock promotion and manipulation.

Regarding revenue, Thndr operates on a commission-free basis and has three main streams: a monthly subscription for real-time market data, fees from asset managers on the platform, and income from uninvested funds kept in bank deposits. Thndr aims for a tenfold growth in assets under custody and user count in 2022, with plans to add more investment products, including Shariah-compliant options. The recently ratified Fintech Act is expected to boost the platform's growth by facilitating online verification and alternative funding methods.

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Images courtesy of: Fintech Global, Khazna, Lucky, Telda, Blnk, Fawry, AMAN Holding, MNT-Halan, Paymob, FlapKap, MoneyFellows, PaySky, and Thndr