This week’s edition of Finovate Global looks at recent fintech developments in Egypt.
Egyptian fintech Sahl raised $6 million in funding
An investment of $6 million will help Cairo-based fintech Sahl pursue its expansion in Saudi Arabia. The funds – courtesy of a Series A round led by Ayady for Investment and Development and featuring participation from existing investors Egypt Pay, Delta Electronic Systems, and E-Finance – will also help support Sahl’s mobile bill payment platform.
Sahl enables users to pay for more than 50 services, including electricity, water, mobile bill payments, and more via NFC-enabled, rechargeable prepaid cards. The firm also offers B2B solutions: the company’s Services Gateway serves as a central hub to aggregate billpay services for other payment processors and digital apps, while Sahl’s Acceptance solution helps businesses accept online payments. Founded in 2020, Sahl is among the few Egyptian companies to directly integrate with government agencies and telecom operators.
Ultimately, the company plans to grow into a more comprehensive financial services provider. For now, Sahl’s growth strategy involves becoming the dominant force in the payments market for utilities companies – a market worth EGP 250 billion a year.
“At Sahl, we are committed to addressing the challenges faced by consumers in utility payments, starting with electricity and expanding to water, gas, telecom, and various other essential services,” Sahl CEO Abdullah Assal said. “Our innovative use of NFC technology eliminates the need for consumers to leave their homes to charge prepaid cards, saving valuable time and effort.”
Sahl serves more than 12 million customers a month and 15 million households in Egypt.
HSBC Egypt to launch $31.5 million fund for SME-based fintechs
You don’t have to be Sahl to feel as if good funding fortunes are coming your way. HSBC Egypt will launch a new $31.5 million (EGP 1.5 billion) fund dedicated to small and medium-sized businesses in the fintech sector. The fund, which will be managed by EFG Holding, has secured approval from the Central Bank of Egypt (CBE) as well as the backing of financial institutions such as the Suez Canal Bank. The fund is slated to go live in Q3 of 2024.
The focus on fintech is designed to take advantage of the spread of digital banking and payments in the region. But the initiative is part of a grander strategy by HSBC to encourage technological innovation and spur economic growth in Egypt.
Established in 1982, HSBC Bank Egypt supports a network of 100 branches and 20 mini-bank units throughout the country. The largest foreign bank in Egypt, HSBC Bank Egypt has total assets of approximately $7 billion and a market share of 7%.
Banknbox Egypt announced multiple strategic partnerships
Digital services and paytech provider Banknbox Egypt has inked strategic partnerships with banks and fintechs in eight countries so far in 2024. Backed by the Central Bank of Egypt, Banknbox has teamed up with firms and financial institutions in countries ranging from Iraq and Libya to Moldova and a number of African countries.
“We would like to thank the CBE for its continuous support in ensuring that Banknbox achieves its vision of transforming Egypt into a regional hub,” Banknbox Chairperson and Managing Director Bassem Mahmoud said.
Banknbox is a regional payment solutions and processor offering issuing and acquiring services, as well as value-added services such as billpay and fraud management. The company also offers integrated digital banking services, including mobile and internet banking, electronic wallets, eKYC and encoding services, and more. Founded in 2008 and headquartered in Cairo, Banknbox began the year partnering with SWFT, a banking and finance platform for SMEs. The strategic partnership will give SMEs a suite of innovative banking solutions and tools for smart cash flow management.
“We believe that by uniting efforts with SWFT, we can revolutionize the way SMEs manage their finances,” Mahmoud said. “It’s a new opportunity for Banknbox to provide more services to the Egyptian market, relying on its regional platform in Egypt to serve companies and banks in the region. This strategic cooperation complements the company’s successes in achieving growth rates in the Egyptian market.”
Here is our look at fintech innovation around the world.
Central and Southern Asia
- International e-wallet service provider and payment gateway STICPAY integrated with India’s real-time payments system, UPI.
- Pakistan-based consultancy Dellsons Associates partnered with UAE-based NymCards to expand into Pakistan and the Middle East.
- Indian digital lending platform Fibe raised $90 million in Series E funding.
Latin America and the Caribbean
- Payments orchestration platform Paysecure announced a strategic alliance with a55 as part of its expansion plans in Latin America.
- Mexican fintech Aplazo raised an additional $45 million in equity financing in a round led by QED investors.
- Have hackers from North Korea targeted a Brazilian fintech?
Asia-Pacific
- Malaysia-based digital challenger Boost Bank launched its banking app.
- Talino Venture Studios and Chemonics International unveiled an instant payment system, Higala, in the Philippines.
- Indonesian B2B fintech Paper.id closed a Series B round led by Square Peg.
Sub-Saharan Africa
- Telecommunications and mobile money services provider Airtel Africa teamed up with Network International for payment processing.
- Central Bank of Kenya to issue payment licenses to fintech startups.
- Is “passporting” the key to helping advance the growth of fintech in Africa.
Central and Eastern Europe
- Canada-based open banking solutions provider Salt Edge announces partnership with Moldova’s Moldindconbank.
- Sustainable banking provider Tomorrow partnered with German fintech lemon.markets.
- Tietoevry Banking expanded its card personalization services in Riga, Latvia.
Middle East and Northern Africa
- Payment management solutions provider Paytiko announced expansion to Dubai.
- ICYMI: Check out our Finovate Global interview with Michal Berdugo of Israel-based Citrusx.
- Oman Arab Bank launched its direct debit service.