As part of its efforts to assist the growth of Egypt’s fintech sector, the International Finance Corporation (IFC) has announced an investment in a new venture capital fund from Disruptech Ventures.
Up to 25 financial technology businesses will get early funding through Disruptech, an initiative of the International Finance Corporation (IFC). Egypt’s innovative companies, which are often unable to secure finance to bring their discoveries to market, will greatly benefit from the $25 million raised by numerous investors in the fund.
Only a third of Egyptians have a bank account, according to the World Bank’s latest data. Increasing access to financial services, from depositing money to paying bills, is critical. Venture capital in Egypt is only a fifth of the norm for emerging markets, but it has expanded more than tenfold since 2016.
Disruptech will not only provide funding but also guidance and mentorship to the companies it backs.
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Mohamed Okasha, Managing Partner from Disruptech Ventures, said, “Egypt is full of brilliant, skilled founders, but too often, they cannot acquire the financing they need to build their enterprises.” Fintech/fintech-enabled development in Egypt is the focus of this fund, which aims to remedy that.
At the same time, IFC’s investment in Disruptech will help the Egyptian economy flourish by enabling more people to have access to financial services, a goal of IFC Egypt Country Officer and Acting Country Manager for Egypt and Libya Yasmine El-Hini.
With Disruptech’s recent investments in financial technology companies, Egypt’s COVID-19 pandemic-inspired financial services expansion is being accelerated.
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To far, Disruptech has invested 30 percent of its fund size in financial technology start-ups since it was founded 18 months ago. Fawry, Egypt’s largest electronic payment provider, was run by Mohamed Okasha, a fund manager who also co-founded the company.
As part of the Startup Catalyst initiative run by the International Finance Corporation (IFC), IFC has invested in Disruptech. As of June 2021, IFC’s global venture capital investments totaled $1.6 billion in more than 100 firms and funds, supporting more than 1,700 small and medium-sized enterprises..
In January 2022, IFC’s Egypt investment portfolio totaled $1.2 billion. Private firms and the country’s economic activities have received $720 million from IFC over the past two fiscal years in support of the COVID-19 epidemic.
Disruptech Fund Egypt Disruptech Fund Egypt
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