Fawry for e-payments plans to expand in the Egyptian market, according to CEO Ashraf Sabry.
The expansion plan is focused on approaching consumer segments nationwide, to support the government’s efforts to deploy electronic services, and to create a cashless community, as well as make it easier for citizens to pay government benefits. He added that the company is set to launch modern services to match global developments in the e-payment sector.
Three international investment funds acquired about 85% of Fawry on Wednesday, at a total cost of $100m (EGP 773m).
These funds are the Egyptian American Enterprise Fund, which acquired 20%, Helios Investment Partners, which acquired about 40% on behalf of the investment funds it manages, and the MENA Long-Term Value Fund that acquired 25% of stakes.
The remainder of Fawry’s share is owned by the International Finance Corporation (IFC) and the management, which own 5% and 10% respectively.
The deal, according to Sabry, will enhance the company’s opportunities to diversify its activities and to expand beyond the domestic market, on the regional and African levels.
Sabry said the deal also reflects Fawry’s confidence in its investors, and proves its leadership in e-payments. Moreover, Fawry’s ability to attract foreign investors shows it has investing potential. “We will continue to innovate,” Sabry said.
The CEO explained that the management team’s continuous contribution in Fawry reflects the trust in the technical experience and financial abilities brought by new partners to enter into a new growth phase.
Sabry revealed that the company seeks to utilise the investment obtained to provide payment solutions for the e-commerce sector, in addition to mobile-payment solutions and reaching low-income areas in the form of services in small villages.
He added that the company will allocate investments worth EGP 20m for payment solutions for the e-commerce sector during the upcoming period. The technology will help production growth, and hence should be seen as a basic structure, in which investment should be stimulated.
Sabry noted that the company is cooperating with different government bodies to offer electronic services, most prominently car licences renewal and electronic payment of fines and compulsory insurance fees. Licences will be delivered to customers’ homes, which is one of the distinctive government services.
Sabry explained that the company is paying attention to electronic services to increase growth opportunities in the IT and economic sectors during the upcoming period.
He added that Fawry currently offers more than 100 electronic services in cooperation with banks. He pointed out that Egyptian consumers require awareness-raising efforts regarding electronic services, which requires significant promotion from the governmental side.
Sabry noted that Fawry’s wide expansion and large turnout on its services places the company in front of a new challenge, especially in light of the expected recovery in the Egyptian economy.
He also affirmed that Fawry’s future strategy will widely focus on expanding its services to new areas in order to be closer to customers, through a package of various electronic payments. The package includes telecommunications and utilities bills, education, donations, insurance, Internet payment, tickets and car licences.
Sabry further explained that the company has great confidence in the Egyptian market, and believes in promising opportunities in the e-payment sector, in light of its large population, exceeding 90 million individuals, and the great growth in using IT and telecommunication technologies.
He added that since 2008, when Fawry launched its activities in the Egyptian market, it planned to be the closest e-payment provider to all citizens nationwide. Farwy achieved this target and is now available everywhere in order to provide the needs of citizens and companies through a number of developed electronic services, in accordance with the latest standards, as well as the best insurance and protection systems.