Three of Egypt’s largest national banks – Banque Misr, National Bank of Egypt, and Banque du Caire – and Global Ventures, a leading MEA-focused venture capital firm – have announced the launch of Nclude by Global Ventures, a new fund focused on the acceleration of fintech innovation and financial inclusion in the North African country. This follows the approval by the Central Bank of Egypt (CBE).
Currently, an equivalent of $85-million has been invested into the Nclude fund. The investments were led by Banque Misr as an Anchor Investor and National Bank of Egypt and Banque du Caire as Strategic Investors.
Other investors include eFinance Investment Group and Egyptian Banks Company. The fund is also set to attract further investment from prominent regional and international investors, the announcement says.
“This step is an implementation of the directives of President Abdel Fattah El-Sisi to support innovative youth in Fintech and the Fintech-enabled sector as a crucial step to transform Egypt into a regional center for the FinTech industry in the Arab World and Africa,” says Tarek Amer, Governor of the CBE, about the creation of the new fund.
The Nclude fintech fund has already made its first investments in four Egyptian companies. These are:
- Khazna: A financial Super App that offers convenient, technology-driven financial solutions to underserved consumers
- Lucky: Egypt’s leading consumer fintech app, offering installments, offers, cashback rewards, and credit.
- Mozare3: Meaning farmer in Arabic, is an Agri-fintech platform that provides smallholder farmers with direct access to inputs financing, markets, and hands-on technical support.
- Paymob: A leading digital payment service provider.
In addition to investing in existing start-ups, the Fund will be supported by Shipyard Technology Ventures – a global venture builder – who is bringing its world-class development capabilities to the Egyptian market to help create Fintech start-ups that address local and regional opportunities.
“We are delighted to have the overwhelming support of all our investors in this fund, and thankful for their trust. Over the past few years, we have had the privilege of being part of the journey of many entrepreneurs across MEA, with a particular focus on the Fintech sector and Egypt as a key priority market,” commented Basil Moftah, Partner at Global Ventures.
“Egypt’s huge unbanked, young population and cash-dominated economy offer strong opportunities for local and regional Fintech and Fintech enabled companies who continue to witness exponential growth in the market,” Moftah continues.
“Over the past few years, Egypt made a quantum leap forward by becoming home to a vibrant entrepreneurial ecosystem with Fintech at its heart. Thanks to progressive government regulation, and an increasing partnership with financial institutions, Fintech startups, are playing a pivotal role in transforming Egypt into a financially inclusive digital economy via Fintech innovation,” concludes Eslam Darwish, General Partner of the Nclude Fintech Fund.