MNT-Halan, an Egyptian fintech company, has raised US$200 million in equity and another US$140 million in loans, to put the company’s valuation at over $1 billion.
The company received a US$120 million investment in September 2021 from major global and regional growth investors, and it has now received a further US$200 million in equity capital from Chimera Abu Dhabi, a private investment firm that manages a diversified portfolio of listed and unlisted equities on both local and regional markets.
The investment represents more than 20% of the company, and MNT-Halan is currently in advanced stages of conversations with top international investors to raise an additional US$60 million in primary capital. MNT-valuation Halan’s will approach $1 billion following the completion of these transactions.
The company recently announced two securitisations totaling US$140 million with Commercial International Bank (CIB), Egypt’s largest private sector bank, via subsidiaries Tasaheel Microfinance Company (Tasaheel) and Halan Consumer Finance (Halan). Tasaheel has securitised US$100 million of its loan book in its second securitisation transaction. In its first securitisation since its inception in 2021, Halan Consumer Finance has securitised US$40 million of its loan book. Both offerings were oversubscribed.
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With 246,000 contracts and a strong cash pay-back ability, the combined securitized loan books represent the high quality, diversity, and granularity of the offerings, according to MNT-Halan.
The money will help the company’s loan book expand in light of the rising demand and the inflationary environment at the moment. In its securitization programme, MNT-Halan has the ability to further securitize up to US$250 million.
Chimera Abu Dhabi, one of the best and most forward-thinking investors in the area, brought a special and committed understanding of its business, according to MNT-Halan founder and CEO Mounir Nakhla.
“Having the backing of Chimera Abu Dhabi is of significant support to the execution of our strategy. The timing of the transaction is also a testament to our ability to significantly increase our revenues and open new revenue streams while growing our bottom line, despite the macro-economic situation,” he said. “I am excited for what lies ahead as we continue to grow both organically and inorganically by offering cutting edge financial products and services locally and internationally to empower the underserved.”
“We are thrilled to be part of Egypt’s greatest fintech success story. MNT-Halan’s upward trajectory and momentum reflect the management team’s realisation of its extraordinary vision to transform a high touch business by seamlessly infusing an unparalleled proprietary tech platform while increasing product depth for its target customer segment,” said Seif Fikry, CEO of Chimera Abu Dhabi.
A Look At What The Startup Does
MNT-Halan, Egypt’s largest and fastest-growing lender to the unbanked, started off in 2018 as a ride-hailing service for two- and three-wheeled vehicles. Since then, it has transformed into a super app.
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Through its consumer-facing app, merchant app, distributed loan and payment processing software, and payment solutions, the firm links customers, vendors, and micro-enterprises. It also provides services like ride-hailing and logistics.
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