Egyptian EFG Hermes’ Tanmeyah Buys B2B Marketplace Fatura

Tanmeyah for Microfinance Services, an EFG Hermes Holding subsidiary based in Egypt, has purchased Fatura, a B2B e-commerce marketplace and digital financing services provider, for an unknown sum.

Hossam Ali, Ahmed Anwar, and Abdullah Mohebeldin founded the platform in 2019 to bring retailers, producers, and wholesalers together in one place. Fatura provides a variety of innovative services to its consumers, including a marketplace with real-time product browsing and price transparency, as well as B2B purchase now, pay later services and marketing help.

“Tanmeyah’s acquisition of Fatura, backed by Egypt Ventures, and its accelerator “EFG EV Fintech,” which is a partnership with EFG Hermes Holding, comes in line with the Government of Egypt’s efforts to increase the involvement of, and empower, the private sector as a major driver of comprehensive and sustainable economic growth,” said Minister of International Cooperation, H.E. Dr. Rania A. Al-Mashat. Al-Mashat went on to say that Egypt Ventures, Egypt’s first venture capital firm with government backing, has been successful in maximizing the return on investment in a number of pioneering developing enterprises in their sectors.

Sawari Ventures, Arzan VC, Egypt Ventures, Khawarizmi Ventures, EFG-EV, and the Cairo Angels previously led a $3 million Series A financing for Fatura.

“This acquisition marks a major milestone for Tanmeyah, which has evolved to become a vital participant within our Non-Bank Financial Institutions (NBFI) framework,” said Karim Awad, Group CEO of EFG Hermes Holding. Tanmeyah used this strategic acquisition to accelerate its digital transformation and expand its product and service offerings, allowing the company to become more holistic and serve Egypt’s microfinance sector. I’m delighted that all of our NBFI businesses are contributing to Egypt’s digital revolution as we continue to generate synergies through successful cross-selling, which helps expand our product and service range while also helping financial inclusion.

We’ve always recognized potential in Fatura and are confident in its ability to innovate in the B2B digital arena, which is why our very own EFG EV Fintech became one of the company’s early investors years ago. ” By combining Tanmeyah and Fatura as complimentary businesses, both companies will be able to deliver market-competitive and creative solutions.

Tanmeyah’s digital transformation plan includes leveraging Fatura’s platform to create new and disruptive financial solutions in order to accelerate business growth. Tanmeyah will also be able to access Fatura’s rapidly expanding network of merchants, filling a significant need in the B2B credit market.

Tanmeyah’s vast geographic footprint and diverse client base will assist Fatura expand its network of merchants and enter new areas of the B2B market, while Tanmeyah’s strong financial position and access to capital will aid Fatura’s expansion. Tanmeyah’s CEO, Hossam AlNaggar, said of the acquisition, “We are quite proud of this transaction.” Fatura is an important addition to Tanmeyah’s portfolio because it allows the company to digitally adapt and develop more quickly.

Our new unified product and service offerings, which will assist microenterprises in acquiring inventory from wholesalers through a one-of-a-kind digital marketplace, demonstrate our commitment to helping the Egyptian economy from the ground up.

We see a significant financing vacuum in the B2B sector, and by banding together, we will be able to enable digital lending and expand our coverage throughout Egypt. Microfinance continues to play an important role in assisting low-income households in gaining access to opportunities, stabilizing their revenue streams, and dealing with inflationary pressure.”

Tanmeyah’s total number of clients had expanded to 391,000 by the end of 1Q22, and its portfolio had grown to c. EGP 3.9 billion, its highest level since creation. “I feel tremendously pleased of what we have achieved at Fatura and I am super enthusiastic about the following chapter in our story,” said Hossam Ali, CEO of Fatura.

We built a robust startup in just two years, backed by a solid staff of 500 believers, that has grown dramatically across the country and touched over 60,000 merchants.

We are honored to be establishing the standard for M&A between digital disruptors and industry heavyweights in the Egyptian startup ecosystem, and we are confident that this milestone will spark a wave of more successful cases. We hope to completely revolutionize the way B2B works in Egypt through Tanmeyah, significantly simplifying trade, financing, and payments. Tanmeyah’s vast client base and strong financial position will help Fatura access greater potential as a result of this transaction.”

Fatura’s Gross Merchandise Value (GMV) and number of active users have increased significantly over the years, notably after two successful rounds of investment from six different venture capital funds and other renowned angel investors.

Tanmeyah will control 100% of Fatura Netherlands B.V. after the acquisition, and the company’s founders will join Tanmeyah’s management team and become Tanmeyah stockholders. Internally generated funds and existing Tanmeyah treasury shares will be distributed to Fatura stockholders.