Tanmeyah for microfinance services, owned by EFG Hermes, announced on Wednesday its acquisition of Fatura Netherlands BV.
Fatura is backed by prominent shareholders in the field, with EFG EV Fintech being one of the primary investors since 2020.
The platform brings together retailers, manufacturers, and wholesalers in one place. Fatura offers its users a multitude of innovative services, including B2B buy now pay later services and marketing support.
Commenting on the deal, Minister of International Cooperation, Rania A. Al-Mashat, said: “Tanmeyah’s acquisition of Fatura, backed by Egypt Ventures, and its accelerator “EFG EV Fintech”, which is a partnership with EFG Hermes Holding, comes in line with the Government of Egypt’s efforts to increase the involvement of, and to empower, the private sector, as a major driver of comprehensive and sustainable economic growth.”
Al-Mashat added that Egypt Ventures, the first venture capital company in Egypt with a government contribution, has succeeded in maximizing the return on investment in many pioneering emerging companies in their fields. This exit is a confirmation that the investment in Fatura has paid off and enabled the company to move forward in developing the volume of its business.
Commenting on the acquisition, Karim Awad, Group CEO of EFG Hermes, said: “This acquisition marks a major milestone for Tanmeyah, which has grown to become a key player under our Non-Bank Financial Institutions (NBFI) platform.”
Hossam AlNaggar, CEO of Tanmeyah, also commented: “Fatura is a key addition to Tanmeyah’s portfolio, as it offers the company a faster route to digitally transform and develop. Our new consolidated product and service offerings confirm our focus on supporting the Egyptian economy from the ground up as they will aid microenterprises in ordering inventory from wholesalers through a one-of-a-kind digital marketplace. We see a huge financing gap in the B2B segment and, by joining forces, we will be able to power digital lending and cover more sectors in Egypt. Microfinance continues to play a key role in helping low-income households to access opportunities, stabilize their income flows, and cope with inflationary pressure.”
By the end of 1Q22, Tanmeyah’s total number of clients had grown to reach a record high of 391,000 and its portfolio reached c. EGP 3.9bn — its highest level since inception.
Hossam Ali, CEO of Fatura, said: “I feel incredibly proud of what we have achieved at Fatura and I am super excited about the upcoming chapter in our story. In just 2 years, and backed by a solid team of 500 believers, we have built a solid startup that has grown exponentially across the whole nation and impacted over 60,000 merchants.