Fawry, Egyptian fintech startup is poised to raise $51m via right issue, explores US listing
Egyptian fintech Fawry has announced plans to raise 800 million Egyptian rupees (US$51 million) in growth capital through a rights issue to existing shareholders, with the proceeds to fund a new chapter of expansion in both consumer and financial services intended to be used for consumers as well as merchants.
Founded in 2008, Fawry is Egypt’s largest digital transaction and electronic payment platform, offering a variety of ways to pay bills and other financial services through more than 250,000 agents, including providing payment gateways, e-commerce solutions, and microfinance solutions for consumers and businesses of channels.
The company was listed on the Egyptian Stock Exchange in 2019 and subsequently became a “unicorn” when its valuation surpassed $1 billion in 2020. It has now announced plans to raise more capital and explore a listing in the United States (US).
The EGP 800 million will be used to expand offerings on MyFawry to position the company at the forefront of super app opportunities in Egypt. I continue to invest in strengthening its position in dealer acquisition and supply chain solutions.
A portion of the proceeds will also go towards executing the company’s investment strategy, accelerating innovation, and supporting the burgeoning ecosystem of high growth and fintech startups that power Fawry’s offering through e-commerce, logistics, fintech services, insurance technology, and others complement industries.
Fawry has become an active investor in Egyptian startups in recent years. Fawry is also creating an American Depositary Shares (ADS) program and is considering a US listing with a possible SEC-registered secondary offering.
The timing, quantity of ADS, and price of the proposed offering have not yet been determined. The proposed offering is subject to market conditions, shareholder and regulatory approvals and no assurance can be given as to whether or when the offering will be completed, or as to the actual scope or terms of the offering.
