The news:
- Catalyst Partners Middle East (CPME) completes Egypt’s first fintech SPAC merger by acquiring Qardy for $23 million.
- The acquisition is executed through a share swap, aligning with CPME’s strategic expansion in digital lending.
- This move follows Swvl’s 2022 SPAC merger, highlighting Egypt’s growing engagement with alternative financing methods.
Catalyst Partners Middle East (CPME) has acquired fintech startup Qardy in a $23 million deal, signalling a new era for Egypt’s startup ecosystem.
The acquisition of Qardy, a digital lending platform founded in 2022, is executed through a Special Purpose Acquisition Company (SPAC) merger. This strategic move allows CPME to leverage Qardy’s presence in Egypt’s digital lending space, particularly targeting micro, small, and medium-sized enterprises (MSMEs) seeking funding.
This landmark deal follows the precedent set by Swvl, an Egypt-born and Dubai-based mass transit and shared mobility provider, that went public in March 2022 through a SPAC merger with Queen’s Gambit Growth Capital. Swvl’s listing on the Nasdaq marked it as the first company launched from Africa and the second Middle Eastern company to go public via a SPAC merger.
The Financial Regulatory Authority (FRA) has played a pivotal role in facilitating such innovative financial instruments by establishing a regulatory framework for SPACs. This framework aims to enhance investment opportunities in high-growth industries, including non-banking financial services and fintech sectors.
The successful execution of Egypt’s first SPAC merger not only underscores the country’s commitment to embracing alternative financing methods but also sets a precedent for future transactions in the region. As Egypt continues to modernise its financial markets, such developments are poised to attract increased investor interest and foster growth within the startup ecosystem.
With the FRA’s supportive regulatory environment and the successful precedent set by Swvl and now CPME’s acquisition of Qardy, Egypt is well-positioned to become a hub for innovative financial transactions in the Middle East and North Africa region.
