Egypt - Tanmeyah for Microfinance Services, a wholly-owned subsidiary of EFG Hermes Holding and Egypt’s leading provider of microfinance solutions, has announced that it has successfully acquired Fatura Netherlands BV (Fatura).

Fatura is a fast-growing tech-driven Business-to-Business (B2B) platform with a regional footprint of 22 governorates in Egypt. 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, ranging from a marketplace with live product viewing and price transparency to B2B buy now pay later services and marketing support services.

Commenting on the deal, Minister of International Cooperation Dr. 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 Egypt government’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 said: "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."

"Moreoever, Egypt Ventures, and its two business accelerators, have invested in more than 175 companies since 2017, and the coming period will witness more success stories in supporting start-ups and exits that enhance the participation of the private sector in economic development," she added.

On the acquisition, EFG Hermes Holding CEO Karim Awad said: "It marks a major milestone for Tanmeyah, which has grown to become a key player under our non-bank financial institutions (NBFI) platform. Tanmeyah turned to this strategic acquisition to bolster its digital transformation and enrich its product and service offerings to become more holistic and support Egypt’s microfinance space."

"I am proud that all our NBFI brands continue to fuel the drive for digital transformation in Egypt as we continue building synergies by means of effective cross-selling, which helps diversify the offerings across our product and service portfolio, further supporting financial inclusion," he stated.

"We’ve always seen potential in Fatura, and we are firm believers in its ability to innovate in the B2B digital space, which is why our very own EFG EV Fintech made the decision to become one of the early investors in the company years ago," he added.

Tanmeyah CEO Hossam AlNaggar said: "We are extremely proud of this transaction. 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," he added.

"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," he added.

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 EGP3.9 billion — its highest level since inception.

Fatura CEO Hossam Ali 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."

"We are honoured to be setting the benchmark in the Egyptian startup ecosystem for M&A between digital disruptors and industry leaders, and firmly believe that this milestone will ignite a wave of more successful examples," observed Ali.

"Together with Tanmeyah, we aim to fundamentally change how B2B works in Egypt, radically facilitating the way trade, financing and payments are done. Through this acquisition, Fatura will strongly benefit from Tanmeyah’s broad client base and solid financial position to unlock more opportunities," he added.

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