Egyptian fintech giant, Fawry, has announced Thursday its plan to raise EGP 800 million (~$50.9 million) in growth capital through a rights issue to existing shareholders.
In a statement, the company said the proceeds will be used to finance its growth in financial services for both consumers and merchants.
In addition, the company will expand its offerings on the MyFawry platform, which will help position it at the forefront of the Super App opportunity in Egypt. The company added that it will continue to invest in strengthening its position on merchant acquiring as well as supply chain solutions.
Founded in 2008, the Egyptian fintech unicorn is the largest digital transaction and e-payment platform in Egypt, serving both the banked and unbanked population. The Company offers ways to pay bills and other financial services, including providing payment gateway, e-commerce solutions, and/or microfinance solutions to consumers and businesses through more than 250,000 agents and a variety of channels, including online, ATMs, mobile wallets, and retail points of sale.
The Company’s nationwide network of merchants includes merchants in the telecom, education, healthcare, grocery, stationery, and postage industries. With a network of over thirty-five partner banks and a vast member network, the Company can process an average of three million transactions per day, serving an estimated customer base of thirty-five million users each month.
When this deal is closed, part of the funding will be directed towards executing Fawry’s investment strategy, fast-tracking innovation, and supporting the budding ecosystem of high-growth startups and fintech that complement Fawry’s offering through e-commerce, logistics, fintech services, insuretech among other verticals.
In October, the Fawry made its first investment outside Egypt in Sudanese online classifieds platform, alsoug, picking up a strategic minority holding in the company.
This proposal to finance the company’s growth plans has been approved by the company’s board of directors but will require shareholder and regulatory approvals. The Company’s board of directors also approved the creation of an American Depositary Shares (“ADS”) program and is exploring a listing in the United States in connection with a potential SEC-registered secondary offering.
The timing, number of ADSs, and price of the proposed offering have not yet been determined. The proposed offering is subject to market conditions, shareholder and regulatory approvals, and there can be no assurance as to whether, or when, the offering may be completed or as to the actual size or terms of the offering.