A responsAbility Investments-managed private equity company has invested in Fawry, a mobile payments platform in Egypt.
Michael Fiebig, Head of Equity Investments Financial Institutions at responsAbility Investments AG, said: “With its ability to provide convenient mobile access to financial services to both private individuals and small to medium-sized businesses, Fawry ideally complements our existing portfolio of equity investments in financial institutions in emerging economies.”
The responsAbility-managed private equity vehicle will be invested in Fawry alongside Helios Investment Partners, one of the largest Africa-focused investment firms; MENA LTV Fund, managed by EFG Hermes, one of the region’s leading investment banks; Egyptian American Enterprise Fund, managed by Lorax Capital Partners, an Egypt-focused private equity firm; and the International Finance Corporation, a member of the World Bank Group.
Alykhan Nathoo, Partner, Helios Investment Partners, said: “On behalf of the shareholder consortium I am pleased to welcome responsAbility as a partners in Fawry. We are excited about the value they can add to Fawry in helping further drive financial inclusion in Egypt.”
Over the next few years, mobile payments are expected to generalize in the country and offer attractive growth opportunities for operators in the field.
Through the capital increase, Fawry aims to fast-track the expansion of cashless payments and financial inclusion by leveraging their mobile platform and distribution network.
Fawry is the leading mobile payments platform in Egypt.
Through a network of 65,000 agents, mostly small shop owners, Fawry allows 20 million consumers to perform a variety of transactions such as utility bills payments, airtime top-ups or merchant transactions.
Over the years, Fawry has created a platform connecting all clients’ channels of payments including bank accounts, credit cards and mobile wallets with any of the 23 banks connected to its platform.
Fawry’s success has been to build acceptance and usage from clients as well as banks and merchants.
With more than 100% mobile penetration in Egypt, mobile payments are expected to generalize over the next few years.
Given Fawry’s existing partnerships with industry leaders and public entities as well as the Egyptian government’s intention to offer cashless payment options to citizens for a broad range of services (social housing, driving license, traffic fines, transport), Fawry is ideally placed to benefit from the shift to dematerialized transactions.
Ashraf Sabry, CEO of Fawry, said: Our efficient payment platform and network will enable us to provide financial services for sections of the population that have so far been underserved – at costs that will allow the model to be commercially sustainable. At the same, we aim to further spread cashless transaction in Egypt, thereby serving customers as well as commerce.”