The second season of Shark Tank Egypt, an influential program conducted under the patronage of the Ministry of Communications and Information Technology, has returned. Shark Tank Egypt seeks to assume its role as a beacon of hope for the Egyptian entrepreneurial landscape, aiming to identify the next generation of innovators, creators, and visionaries spanning diverse industries. These enterprising individuals aspire to avail themselves of a unique opportunity to materialize their ambitious projects or further bolster their existing endeavors. The program has garnered the support of a panel of distinguished investors, who have collectively pledged 10.5 million pounds (USD 339,000) to back promising Egyptian startups.
The roster of investors comprises luminaries from the realms of business and industry, including Ahmed Al-Suwaidi, President and CEO of ELSEWEDY ELECTRIC, Ayman Abbas, Chairman of the Board of Directors of “Antro Holding” Group, Abdullah Salam, CEO of Nasr City Construction and Housing Company, Mohamed Farouk, Chairman of the Board of Directors of Mobica Company, and Mohamed Ismail Mansour, co-founder and Chairman of the Board of Directors of Infinity Group. These individuals stand poised to facilitate the advancement of Egypt’s most promising entrepreneurial talents.
Blooms: Cultivating the Future Generation
Saif Ramadan, the founder of Blooms, an enterprise with a 13-year legacy, specializes in the cultivation of children’s culture and skills. Through a range of meticulously tailored programs and immersive experiences, both within and beyond Egypt’s borders, Blooms endeavors to instill in children qualities such as determination and leadership. Notably, one of their programs delves into the domain of AI coding, thereby acquainting the youth with the intricacies of computer programming. Possessing a present valuation of EGP 120,000 and having realized revenues totaling EGP 4 million in the past year, Saif Ramadan sought an investment of EGP 8 million in exchange for a 20% equity stake in the enterprise.
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Although Muhammad Farouk expressed interest in introducing Blooms’ services within his educational institutions, he refrained from extending an investment offer. Similarly, Mohamed Mansour acknowledged the merit of the concept but abstained from submitting a proposal. Contrariwise, Ahmed Al-Suwaidi proposed a collaborative investment alongside Ayman Abbas and Abdullah Salam, offering a 50% equity stake in exchange for providing a dedicated operational facility. However, Abbas expressed reservations concerning the relatively sluggish growth of the company over its 13-year history, while simultaneously questioning the enterprise’s lofty valuation. Consequently, Abbas opted not to make an investment offer.
In a deviation from his peers, Abdullah Salam took a distinct approach, forging a partnership with Al-Suwaidi. They committed to the establishment of a central headquarters and a cumulative investment of EGP 4 million over the span of four years, all in exchange for a 50% equity stake. Saif Ramadan concurred with this compelling offer, thus demonstrating the potential synergy between Blooms and these seasoned investors.
Crazy Tuna: Navigating the Digital Wave
Islam Al-Badry and Omar Sharif introduced their vision for Crazy Tuna, a company specializing in the sale of tuna and fish products. Over time, they successfully transformed a humble website into Egypt’s preeminent platform for showcasing these maritime delicacies, with sales in 2022 reaching approximately EGP 960,000 and a net profit of EGP 180,000. Requesting EGP 2.5 million in exchange for a 20% equity stake, their intention was to utilize the investment to enhance the quality of their products compared to imported alternatives. The entrepreneurs also encouraged the investors to place a greater focus on the untapped potential of the tuna market.
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Abdullah Salam extended an offer to invest EGP 2.5 million in exchange for a 30% equity stake, structured as a combination of an interest-free loan, a cash infusion, and an agreement to purchase the company’s products. Conversely, Ahmed Al-Suwaidi proposed to invest EGP 2.5 million in exchange for a 40% equity stake, with Mohamed Farouk aligning with his proposition. The entrepreneurs behind Crazy Tuna found the offer presented by Al-Suwaidi and Farouk to be compelling, ultimately culminating in a successful agreement.
SYMPL: Simplifying Payment Processes
In conclusion, Mohamed Al-Feki, the co-founder and CEO of SYMPL, entered the Shark Tank with a request for EGP 15 million in exchange for a 2% equity stake in his company. SYMPL offers “buy now, pay later” services, thereby allowing customers to procure essential goods and services with the convenience of installment payments. Al-Feki emphasized the development of tailored payment plans for customers and the introduction of a direct debit card. The company has recorded transactions totaling EGP 260 million, boasts a portfolio of 750 brands, and serves a clientele of 45,000 customers. This substantial investment is anticipated to ensure the company’s sustained growth, with expectations of achieving profitability by 2024 and an audacious objective of reaching 85,000 customers.
While Muhammad Mansour and Abdullah Salam refrained from submitting investment offers due to the perceived high valuation, Mohamed Farouk defied this trend by proposing an investment of EGP 15 million spread over two years in exchange for a 30% equity stake in the company. Ayman Abbas followed suit with an identical offer, although he stipulated a demand for a 4% equity stake, which the entrepreneurs ultimately declined.
The resurgence of Shark Tank Egypt for its second season has yet again underscored Egypt’s flourishing entrepreneurial spirit and the steadfast commitment of its seasoned business leaders to nurture innovation. The investments transacted today are poised to invigorate the growth of these budding startups, profoundly influencing Egypt’s business landscape. With a promising lineup of entrepreneurs and a host of pioneering concepts, the stage is impeccably set for further economic advancement and innovation within the land of the Pharaohs.
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