Tanmeyah for microfinance services, a wholly-owned subsidiary of EFG Hermes Holding and Egypt’s provider of microfinance solutions, announced that it has successfully concluded the acquisition of Fatura Netherlands B.V. (“Fatura”).
Fatura is a fast-growing tech-driven 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, H.E. 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 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.”
“Egypt Ventures, the first venture capital company in Egypt with a government contribution, has succeeded in maximising 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. Moreover, 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.”
Commenting on the acquisition, Karim Awad, Group CEO of EFG Hermes Holding 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. 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. 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.”
The consolidation of Tanmeyah and Fatura as complementary businesses presents an opportunity for both to offer competitive and innovative solutions to the market. The deal fits within Tanmeyah’s digital transformation strategy to drive business growth by leveraging Fatura’s platform to introduce new and disruptive financial products. It also allows Tanmeyah to access Fatura’s fast-growing network of merchants and fill a large gap in the B2B credit market.
Tanmeyah’s extensive geographical presence and broad client base will help Fatura expand its network of merchants and venture into new sectors of the B2B market, while its solid financial position and access to funding will help bolster Fatura’s growth.
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. 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.”
“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.”