Egyptian startup, MNT-Halan, has today announced a $400 million investment that would see it become Egypt's first unicorn and the first African unicorn in 2023.
The startup, which provides financial services and an eCommerce ecosystem for unbanked customers in the North African country, will receive $260 million in equity financing and $140 million in securitized bond issuances. Private investment firm, Chimera Investments invested $200 million in the company, which will give it a 20% stake.
The securitization carried out by the company was through its subsidiaries — Tasaheel Microfinance Company (Tasaheel) and Halan Consumer Finance (Halan). While Tasaheel securitized $100 million of its loan book, Halan securitized $40 million of its loan book in deals that the company claims were oversubscribed.
Commenting on the investment, Seif Fikry, Chimera Abu Dhabi CEO, said, "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 realization 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."
MNT-Halan was founded in 2018 and provides services, including lending, payments, consumer finance, and eCommerce services to more than 1.3 million customers. According to the startup, it has disbursed more than $2 billion in loans while its eCommerce platform processes more than $50 million in monthly sales.
Following a global venture capital slowdown in 2022, only a handful of African startups raised a mega round, with Partech Africa putting the number of mega-rounds in Africa at 11 mega deals for 2022. Co-Founder and CEO, Mounir Nakhla, alludes to this, pointing out that the startup has grown its revenues in the last year and added new revenue streams.
"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. 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," he said.
One example of this new income stream has come through its eCommerce play. Last year, it acquired Talabeyah, a B2B eCommerce startup. This acquisition has enabled it to offer loans to the merchants on Talabeyah, who also serve as agency banking outlets. Speaking to TechCrunch, Nakhla also disclosed that the startup would continue to explore possible acquisitions in the fintech and eCommerce space.
