For founders of Fatura, the Egyptian tech-driven Business-to-Business (B2B) ecommerce platform with a regional footprint of 22 governorates in Egypt, the journey has temporarily come to an end and an important milestone has been recorded in their three year journey so far. This is because Tanmeyah for Microfinance Services, a wholly-owned subsidiary of EFG Hermes Holding and Egypt’s leading provider of microfinance solutions, has announced that it has bought Netherlands incorporated startup.
Fatura has previously been supported by important shareholders in the area, with EFG EV Fintech being one of the primary investors since 2020.
This exit confirms that Fatura’s investment has paid off, allowing the company to expand the amount of its business.
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“I feel incredibly proud of what we have achieved at Fatura and I am super excited about the upcoming chapter in our story. In just 2 years, and backed by a solid team of 500 believers, we have built a solid startup that has grown exponentially across the whole nation and impacted over 60,000 merchants. We are honoured to be setting the benchmark in the Egyptian startup ecosystem for M&A between digital disruptors and industry leaders, and firmly believe that this milestone will ignite a wave of more successful examples. Together with Tanmeyah, we aim to fundamentally change how B2B works in Egypt, radically facilitating the way trade, financing and payments are done. Through this acquisition, Fatura will strongly benefit from Tanmeyah’s broad client base and solid financial position to unlock more opportunities,” Hossam Ali, CEO of Fatura, said.
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. Hossam AlNaggar, CEO of Tanmeyah, also commented on the acquisition saying “We are extremely proud of this transaction. Fatura is a key addition to Tanmeyah’s portfolio, as it offers the company a faster route to digitally transform and develop.
Our new consolidated product and service offerings confirm our focus on supporting the Egyptian economy from the ground up as they will aid microenterprises in ordering inventory from wholesalers through a one-of-a-kind digital marketplace. We see a huge financing gap in the B2B segment and, by joining forces, we will be able to power digital lending and cover more sectors in Egypt. Microfinance continues to play a key role in helping low-income households to access opportunities, stabilize their income flows, and cope with inflationary pressure.”
By the end of 1Q22, Tanmeyah’s total number of clients had grown to reach a record high of 391,000 and its portfolio reached c. EGP 3.9 billion — its highest level since inception.
Why The Acquisition?
Fatura’s Gross Merchandise Value (GMV) and number of active users have increased significantly over the years, notably after two successful rounds of investment from six different venture capital funds and other renowned angel investors.
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Tanmeyah and Fatura’s merging as complementary firms provides a chance for both to deliver competitive and creative market solutions.
Tanmeyah’s digital transformation plan includes leveraging Fatura’s platform to create new and disruptive financial solutions to boost business growth. Tanmeyah can also have access to Fatura’s rapidly expanding merchant network, filling a significant vacuum in the B2B credit market.
Tanmeyah’s vast geographical footprint and diverse client base will assist Fatura in expanding its merchant network and expanding into new sectors of the B2B market, while its excellent financial position and availability to capital will aid Fatura’s growth.
Commenting on the acquisition, Karim Awad, Group CEO of EFG Hermes Holding said:
“This acquisition marks a major milestone for Tanmeyah, which has grown to become a key player under our Non-Bank Financial Institutions (NBFI) platform. Tanmeyah turned to this strategic acquisition to bolster its digital transformation and enrich its product and service offerings to become more holistic and support Egypt’s microfinance space. I am proud that all our NBFI brands continue to fuel the drive for digital transformation in Egypt as we continue building synergies by means of effective cross-selling, which helps diversify the offerings across our product and service portfolio, further supporting financial inclusion. We’ve always seen potential in Fatura, and we are firm believers in its ability to innovate in the B2B digital space, which is why our very own EFG EV Fintech made the decision to become one of the early investors in the company years ago.”
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Tanmeyah will own 100% of Fatura Netherlands B.V. following the acquisition, and the founders of Fatura will continue to oversee the firm as part of the Tanmeyah management team while becoming Tanmeyah shareholders. Fatura stockholders will get a mix of internally generated cash and Tanmeyah treasury shares.
“Tanmeyah’s acquisition of Fatura, backed by Egypt Ventures, and its accelerator “EFG EV Fintech”, which is a partnership with EFG Hermes Holding, comes in line with the Government of Egypt’s efforts to increase the involvement of, and to empower, the private sector, as a major driver of comprehensive and sustainable economic growth,” H.E. Dr. Rania A. Al-Mashat, Egypt’s Minister of International Cooperation, said, adding that Egypt Ventures, Egypt’s first venture capital business with government funding, has succeeded in optimising the return on investment in numerous pioneering young enterprises in their sectors.
Egypt Ventures and its two business accelerators have invested in over 175 firms since 2017, and the future period will see more success stories in assisting start-ups and exits that increase the private sector’s role in economic development.
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A Look At What Fatura Does
Fatura, founded in 2019 by Hossam Ali, Ahmed Anwar, and Abdullah Mohebeldin, brings retailers, producers, and wholesalers together in one place. Fatura provides a wide range of unique services to its users, including a marketplace with live product viewing and price transparency, B2B purchase now pay later services, and marketing support services.
Sawari Ventures, Arzan VC, Egypt Ventures, Khawarizmi Ventures, EFG-EV, and the Cairo Angels previously led a $3 million Series A round for the firm.
Fatura B2B Ecommerce Fatura B2B Ecommerce
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh