Fawry for Banking and Payment Technology Services S.A.E. (the “Company,” FWRY.CA on the Egyptian Exchange) announced today that it intends to seek EGP 800 million ($50.8m) in expansion capital via a rights offer to current shareholders. The funds will be used to launch a new era of financial service growth for both consumers and merchants. The offering will assist place the Company at the forefront of Egypt’s Super App opportunity, in addition to expanding the Company’s products on MyFawry. Furthermore, the company will continue to invest in improving its merchant acquiring and supply chain solutions positions. The Company’s board of directors also approved the formation of an American Depositary Shares (“ADS”) program, and the company is looking into a possible SEC-registered secondary offering in the United States. The proposed offering’s timing, amount of ADSs, and price have yet to be established.
The proposed offering is subject to market circumstances, shareholder and regulatory approvals, and no assurance can be given as to whether or when the offering will be completed, or as to the size or terms of the offering.
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A portion of the fundraising proceeds will be used to carry out the Company’s investment strategy, accelerate innovation, and support the burgeoning ecosystem of high-growth startups and fintech that complement Fawry’s offering through e-commerce, logistics, fintech services, and insuretech, among other verticals.
The Company’s board of directors, which includes directors who represent the company’s major shareholders (whether institutional investors or financial institutions), has approved the proposal to raise capital to fund the company’s growth plans if the necessary shareholder and regulatory approvals are obtained.
A Look At What Fawry Does
Fawry is Egypt’s largest digital transaction and e-payment platform, serving both the banked and unbanked. The Company, which was founded in 2008, provides consumers and businesses with ways to pay bills and other financial services, such as payment getaway, e-commerce solutions, and/or microfinance solutions, through more than 250,000 agents and a variety of channels, such as online, ATMs, mobile wallets, and retail points of sale.
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The Company’s peer-to-peer model enables companies of all sizes to accept electronic payments, as well as customers to make payments to merchants in the Company’s network in a convenient and secure manner. Merchants in the telecom, education, healthcare, grocery, stationary, and postage industries are among the Company’s nationwide network of merchants. The Company is able to conduct an average of three million transactions each day, serving an estimated customer base of thirty-five million users per month, thanks to a network of over thirty-five partner banks and a large member network.
Fawry United States Fawry United States
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer