Fawry, an Egyptian fintech firm, has announced intentions to seek EGP800 million (US $51 million) in growth capital through a rights issue to current shareholders, with the proceeds to be utilised to support a new chapter of financial services development for both consumers and merchants.
Fawry, which was founded in 2008, is Egypt’s largest digital transaction and e-payment platform, providing consumers and businesses with ways to pay bills and other financial services, such as payment gateways, e-commerce solutions, and microfinance solutions, through over 250,000 agents and a variety of channels.
In 2019, the firm went public on the Egyptian Stock Exchange, and in 2020, its valuation surpassed $1 billion, making it a “unicorn.” It has now announced intentions to seek further funds and investigate other options.
The EGP800 million will be utilised to develop MyFawry’s products in order to enable the firm to position itself at the forefront of Egypt’s super app opportunity. It would also keep investing in merchant purchasing and supply chain solutions to bolster its position.
A portion of the proceeds will be used to carry out the company’s investment strategy, accelerate innovation, and support the burgeoning ecosystem of high-growth startups and fintech that complement Fawry’s offering through e-commerce, logistics, fintech services, and insuretech, among other verticals. In recent years, Fawry has been an active investor in Egyptian businesses.
Fawry is also developing an ADS programme and considering a listing in the United States in conjunction with a potential SEC-registered secondary offering. The proposed offering’s date, amount of ADSs, and price have yet to be established. The proposed offering is subject to market circumstances, shareholder and regulatory approvals, and no guarantee can be given as to whether or when the offering will be completed, or as to the size or terms of the offering.
