Egyptian fintech Fawry announces intention to raise $51m via right issue, explores US listing

0

Egyptian fintech company Fawry has announced plans to raise EGP800 million (US$51 million) of growth capital through a rights issue to existing shareholders, with proceeds to be used to fund a new chapter of expansions in financial services for both consumers and merchants. 

Founded in 2008, Fawry is the largest Egyptian digital transaction and e-payment platform, offering ways to pay bills and other financial services, including providing payment gateways, e-commerce solutions and microfinance solutions to consumers and businesses through more than 250,000 agents and a variety of channels.

The company listed on the Egyptian Stock Exchange in 2019, and subsequently became a “unicorn” as its valuation passed the US$1 billion mark in 2020. It has now announced plans to raise further capital, and explore a listing in the United States (US).

The EGP800 million will be used to expand the offerings on MyFawry to help position the company on the forefront of the super app opportunity in Egypt. It will also continue to invest in strengthening its position on merchant acquiring as well as supply chain solutions. 

A portion of the proceeds will also be directed towards executing the company’s investment strategy, fast tracking innovation and supporting the budding ecosystem of high-growth startups and fintech that complement Fawry’s offering through e-commerce, logistics, fintech services, insuretech among other verticals. Fawry has become an active investor in Egyptian startups in recent years.

Fawry is also creating an American Depositary Shares (ADS) programme, and exploring a listing in the US in connection with a potential SEC-registered secondary offering. The timing, number of ADSs and price of the proposed offering have not yet been determined. The proposed offering is subject to market conditions, shareholder and regulatory approvals, and there can be no assurance as to whether, or when, the offering may be completed or as to the actual size or terms of the offering.

Share.

About Author

Passionate about the vibrant tech startups scene in Africa, Tom can usually be found sniffing out the continent's most exciting new companies and entrepreneurs, funding rounds and any other developments within the growing ecosystem.

Comments are closed.