EFG EV Fintech was established in 2017 as a joint venture between EFG Hermes Holding’s wholly owned subsidiary EFG Finance and the Government- backed venture capital fund Egypt Ventures. Throughout the years, the company has worked its way to become Egypt’s flagship fintech-focused startup accelerator and micro-VC firm, continuously seeking out strategic fintech startups backed by innovative concepts and entrepreneurs through its solid track record and robust network of connections. Boasting over three decades of investment and regional expertise, and in collaboration with EFG Hermes’ world-class industry and financial know-how, EFG EV Fintech houses the country’s largest fintech portfolio that encompasses some of the region’s most renowned companies operating in key sectors such as Insurance-tech, Regulatory-tech, Digital Banking, and SME lending. The company not only provides the necessary funds to put these startups in gear, but also offers legal advisory, commercial mentorship, and other support services through its cut-to-fit accelerator programs in collaboration with startup accelerator Falak Startups, with an eye to bolster progress and agility in Egypt’s fintech space.

EFG EV Fintech’s investment strategy encompasses providing the initial financing needed for startups through its accelerator programs, and financing post-acceleration pre-series A stage companies through its micro-VC arm.

The company adheres to a defined and tested investment methodology that enables it to efficiently expand its operational footprint and maximize its value-add for stakeholders. In the initial startup screening and selection stage, EFG EV Fintech seeks out investment opportunities through leveraging key metrics such as scalability prospects, presence in the Egyptian market, potential exit strategies, fintech and/or technological concentration, how the investment complements the company’s existing portfolio, and potential synergies. Once applications are reviewed and startups are selected, EFG EV Fintech conducts interviews to meet entrepreneurs face-to-face, in addition to hosting three-day bootcamps to further narrow down the startups eligible to enroll into the company’s accelerator program. The final steps of the company’s investment process entail selected startups entering the Investment Committee, finalizing funding transactions, and gaining full access to EFG EV Fintech’s accelerator program services.

Despite the challenges that global financial markets have faced during 2021, EFG EV Fintech managed to successfully capture the upside of market recovery, displaying solid resilience in the face of unprecedented conditions, and adding even more record-breaking milestones to its list of achievements.

Throughout the year, EFG EV Fintech invested a total of USD 1 million to fund 7 startup companies, providing them with either initial investments, or follow-on rounds of funding. Investments for the year included Fintech Galaxy, Mozare3, Dayra, Fatura, Raseedi, Yashry/Edfa3ly, and Zvendo.

In March 2021, EFG EV Fintech, Tanmiya Capital Ventures (TCV) and several other prominent angel investors participated in raising USD 3 million in a pre-seed round for Dayra — a fintech startup based in Cairo that enables companies of different sizes to provide financial services to their unbanked personnel through Application Programming Interfaces (APIs) and through its mobile application.

During the same month, zVendo, a Software as a Service (SaaS) platform that enables small businesses to build and develop online stores in Arabic through its freemium offerings, landed a USD six-figure investment in a funding round led by EFG EV Fintech and several other angel investors.

Later in May 2021, EFG EV Fintech and various other angel investors participated in raising USD 1 million in a pre-seed round for Egyptian Agri-Fintech startup “Mozare3”, which was led by Algebra Ventures and Disruptech. Mozare3 aims to serve over 20 million small farmers in Egypt by providing them with access to new markets and credit facilities. It also aims to establish the first digital platform for farmers, offering them agronomy support services through its wide network of industry experts.

A month later, Fatura, a business-to-business (B2B) digital marketplace that brings together wholesalers and manufacturers operating in the FMCG industry with retailers through a mobile application, secured a USD 3 million Pre-Series A fund. The funding round was co-led by Sawari Ventures and Arzan VC, with a collective participation from Egypt Ventures, The Cairo Angels, Khwarizmi Ventures and a follow-on investment by EFG EV Fintech.

Later, in October 2021, UAE-based Fintech Galaxy raised USD 2 million in a seed funding round managed by Ahli Fintech in Jordan, and joined by EFG EV Fintech, Raz Holding Group, OMQ Investments, and INSEAD Saudi Angel Investors. Fintech Galaxy is a platform that provides integrative financial services between fintech startups and financial institutions. The platform provides unparalleled access to customer data from affiliate banks through its open banking APIs, while allowing developers to create and build new apps and services.

Another milestone investment for EFG EV Fintech was in December 2021. The company and Falak Startups, along with other high-profile investors, collectively participated in raising a USD 850K pre-series A round to further scale Raseedi, a multi-purpose fintech application that enables dual SIM card users to optimize their spending by automatically detecting which card will make cheaper calls. The app later expanded to providing advance credit and digital bill payment services, offering Egypt’s unbanked population with digital access to credit.

EFG EV Fintech’s portfolio also includes Paynas, the only startup in Egypt to be granted a bank agency licence. The licence enabled the company to issue its own prepaid cards in partnership with Visa and Banque Misr. The company’s portfolio also houses Digified, one of only two reg-tech startups that provide digital identity verification services in Egypt. Additionally, EFG EV Fintech’s portfolio is the only one to include 3 Fintech startups, Dayra, Oxygen and Nowpay, that have joined the leading US-Based accelerator Y combinator.

It is also worthy to mention that EFG EV Fintech has 12 startups that were featured in the last Central Bank of Egypt report on the fintech ecosystem in Egypt.

By the end of 2021, EFG EV Fintech’s portfolio had ramped up significantly, registering a total of 24 companies. At present, 50% of the company’s portfolio falls under the accelerator program, while the other 50% falls under the company’s micro-VC arm.

Looking ahead, EFG EV Fintech will continue supporting upcoming fintech startups in the country and building a strong, supportive, and coherent community across the fintech landscape. EFG EV Fintech also seeks to continue extending its network of partners beyond Egyptian borders, forming lucrative partnerships with leading regional fintech players, and taking part in some of the region’s most highly anticipated Fintech-related events. In 2020, EFG EV Fintech partnered with Startup World Cup and Africa Fintech Summit, and was deemed a major contributor to Africa Fintech’s “State of the Industry” report for the year. In 2021, EFG EV Fintech continued to leverage the ground-breaking success of this partnership, participating as the flagship knowledge partner for the summit that was held in Egypt, and significantly contributing to Africa Fintech’s “State of the Industry” report for the second year in a row. All in all, EFG EV Fintech aims to continue working on strengthening its position in the entrepreneurship ecosystem as the leading fintech accelerator and micro-venture capital fund in Egypt.