23 June 2021
MNT-Halan Disrupts the Lending and Payments Industries in Egypt and the Surrounding Region
MNT BV, a Netherlands corporation, announced today that it has
entered into a share swap agreement with Halan Inc. (“Halan”), a
Delaware corporation and Egypt’s super app. This follows the recent
consolidation of 100% of the shares of Raseedy, the first
independent and interoperable digital wallet in Egypt licensed by
the Central Bank of Egypt. This transaction will serve to accelerate
the digitization of the lending and payments industries in Egypt and
its surrounding region. The terms of both transactions were not
disclosed. Commenting on the transaction, Mounir Nakhla, Founder and
CEO said, “This transaction acts as a catalyst in digitizing
lending, payments, e-commerce, consumer finance (buy now pay later)
and logistics for millions of underserved and unbanked customers.
Our digital platform will enable them to seamlessly access all of
their financial and commercial needs. This is a turning point in our
history.” Nakhla is also an Endeavor entrepreneur. Halan Co-Founder
and CTO Ahmed Mohsen added, “I am pleased to see everything come
together. We are experiencing exceptional growth and our
infrastructure is built to scale. All the digital solutions are
developed in-house, including the core banking system, consumer
facing platforms, payment solutions, merchant application, and all
the required integrations. As the momentum continues, we look
forward to expanding outside of Egypt.”
8 September, 2021
Egyptian fintech MNT-Halan attracts circa US$120 million from global investors
MNT-Halan, Egypt’s leading fintech ecosystem, announced today a circa US$120 million investment by major global and regional growth investors: Apis Growth Fund II, Development Partners International (DPI), and Lorax Capital Partners. In addition, the company has also attracted venture capital backing from Middle East Venture Partners, Endeavor Catalyst, and DisruptTech. This round of investment demonstrates confidence in the fintech opportunity in Egypt and further institutionalizes the capitalization table of MNT-Halan. Previous investors of MNT-Halan have included GB Capital, DPI, Algebra Ventures, Wamda, Nowaisi Capital, Unidelta, Egypt Ventures, Battery Road Digital Holdings, and Shaka VC.
Capitalizing on MNT-Halan’s first mover advantage, proprietary and highly scalable tech capabilities and strong brand in Egypt, this funding endorses its strategy to drive further innovation in its technology, product development, scale to tens of millions of customers, and expand cross-border. The investment also recognizes the scale and long-term potential of MNT-Halan, which has been granted micro, consumer and nano finance licenses from the Egyptian Financial Regulatory Authority, as well as the first independent electronic wallet license from the Central Bank of Egypt.
Committed to bringing seamless financial services to the unbanked and underserved customers in Egypt and the surrounding region, MNT-Halan has developed its scalable proprietary fintech ecosystem in-house, connecting customers, vendors and micro-enterprises through its
consumer facing app, merchant app, Halan Neuron (distributed lending and payment processing software) and payment solutions (wallets and cards).
More than 70% of the population of Egypt’s young and fast growing population of over 100 million is financially under-served and overlooked by traditional financial institutions, yet mobile penetration exceeds 90%. MNT-Halan’s digital solutions, including lending, BNPL, e- commerce, payments, and on-demand logistics, support its mission to empower underserved communities, address inequality and female economic participation. With c.1 million monthly active users, MNT-Halan serves more than 4 million customers in Egypt, of which 3.1 million are financial clients and 1.8 million are borrowers. The company has disbursed more than US$1.7 billion of loans. Its monthly throughput exceeds US$100 million which has grown over 20x in the past five years.
Commenting on the investment, Matteo Stefanel and Udayan Goyal, Managing Partners and Apis Partners Co-founders, said, “We are thrilled to be investing in MNT-Halan, which is our first investment in Egypt. Our belief is that they will be the leading player digitizing the unbanked and bringing financial services to millions of underserved customers in the country, and we look forward to partnering with them to extend their impressive growth trajectory. We believe Mounir Nakhla’s track record, combined with MNT-Halan’s tech team and operational expertise, provide the ideal opportunity to invest in Egypt’s fintech sector.”
DPI Partner Sofiane Lahmar said: “Since our partnership with Mounir and his team dating to 2018, MNT-Halan has rapidly evolved into a market-leading financial technology business, working to drive entrepreneurship and economic development in critically underserved markets. The company is well-positioned to benefit from Egypt and the region’s favourable demographics and rising adoption of digital technologies in its next growth phase. Our ADP III investment in MNT- Halan reaffirms our belief in the management team, and our commitment to the company and its long-term growth prospects, as we continue our focus on investing in high-growth, impact- driven companies from Africa’s fast growing middle class.”
Dr. Raouf Ghabbour, Executive Chairman of GB Auto, the parent company of GB Capital, said, “Since GB Capital first supported Nakhla, the business has delivered on its strategy and has become the prime market player. MNT-Halan has huge potential and we are very excited to welcome these sophisticated investors with deep fintech and emerging markets expertise into our capital structure, laying the foundation for explosive growth in Egypt and beyond.”
MNT-Halan Founder and CEO, Mounir Nakhla, said, “We are at the forefront of the digital revolution sweeping across Egypt, bringing together the unbanked population with our technology. We are on track to bring financial inclusion to tens of millions of Egyptians. As a result, we will unleash this segment’s earnings potential and drive greater participation in the economy.”
The investor group includes:
• Apis Growth Fund II, a London based private equity fund managed by Apis Partners LLP, an ESGI-native private equity firm that specializes in financial services. MNT- Halan represents Apis Partners’ first investment in Egypt;
• African Development Partners III (ADP III), a London based private equity fund advised by Development Partners International (DPI), one of the most active private equity investors in Egypt and Africa with four investments made to date in Egypt. DPI, through a predecessor fund to ADP III was an anchor investor in MNT-Halan in 2018;
• Lorax Fund II, a private equity fund managed by Lorax Capital Partners, an Egypt- focused investment firm with an unmatched record of investing in high-growth opportunities;
• The largest venture capitalists in Egypt and the region, including Algebra Ventures, DisrupTech, Endeavor Catalyst, Egypt Ventures, MEVP, and Wamda, in addition to the backing of Nowaisii Capital, Shaka Capital, Uber’s founding CTO Oscar Salazar, Unidelta, and Battery Road Digital Holdings.
White & Case, Freshfields, Lexence, and Mattouk Bassiouny & Hennawy served as legal advisors on the transaction.