Egyptian B2B marketplace Fatura finds new owner in Tanmeyah for Microfinance Services

EGYPT – Fatura, Egypt based ecommerce marketplace connecting FMCG wholesalers to retailers, has been fully acquired by Tanmeyah for Microfinance Services, a wholly-owned subsidiary of the country’s leading provider of microfinance solutions, EFG Hermes Holding.

Founded in 2019 by Hossam Ali, Ahmed Anwar and AbdAllah Mohebeldin, who were later joined by Ahmed Al Bakary, Fatura was established to meet the demand of FMCG retailers by providing a simple-to-use mobile application that allows them to access a network of carefully vetted wholesalers and manufacturers.

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It offers its users a multitude of innovative services, ranging from a marketplace with live product viewing and price transparency to B2B buy now pay later services and marketing support services.

Since its inception, 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 with EFG EV Fintech being one of the primary investors since 2020.

“I feel incredibly proud of what we have achieved at Fatura and I am super excited about the upcoming chapter in our story. In just 2 years, and backed by a solid team of 500 believers, we have built a solid startup that has grown exponentially across the whole nation and impacted over 60,000 merchants.

“We are honoured to be setting the benchmark in the Egyptian startup ecosystem for M&A between digital disruptors and industry leaders, and firmly believe that this milestone will ignite a wave of more successful examples,” Hossam Ali, CEO of Fatura, said.

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Through this acquisition, Fatura will strongly benefit from Tanmeyah’s broad client base and solid financial position to unlock more opportunities.

“We see a huge financing gap in the B2B segment and, by joining forces, we will be able to power digital lending and cover more sectors in Egypt.”

Hossam AlNaggar, CEO of Tanmeyah Tweet

Also, itmarks a major milestone for Tanmeyah, which has grown to become a key player under our Non-Bank Financial Institutions (NBFI) platform.

By the end of 1Q22, Tanmeyah’s total number of clients had grown to reach a record high of 391,000 and its portfolio reached EGP 3.9 billion (US$207m) — its highest level since inception.

“Fatura is a key addition to Tanmeyah’s portfolio, as it offers the company a faster route to digitally transform and develop. Our new consolidated product and service offerings confirm our focus on supporting the Egyptian economy from the ground up as they will aid microenterprises in ordering inventory from wholesalers through a one-of-a-kind digital marketplace.

“We see a huge financing gap in the B2B segment and, by joining forces, we will be able to power digital lending and cover more sectors in Egypt,” said Hossam AlNaggar, CEO of Tanmeyah.

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Tanmeyah’s digital transformation plan includes leveraging Fatura’s platform to create new and disruptive financial solutions to boost business growth.

It can also have access to Fatura’s rapidly expanding merchant network, filling a significant vacuum in the B2B credit market.

Commenting on the acquisition, Karim Awad, Group CEO of EFG Hermes Holding said, “This acquisition Tanmeyah turned to this strategic acquisition to bolster its digital transformation and enrich its product and service offerings to become more holistic and support Egypt’s microfinance space.

“I am proud that all our NBFI brands continue to fuel the drive for digital transformation in Egypt as we continue building synergies by means of effective cross-selling, which helps diversify the offerings across our product and service portfolio, further supporting financial inclusion.

“We’ve always seen potential in Fatura, and we are firm believers in its ability to innovate in the B2B digital space, which is why our very own EFG EV Fintech made the decision to become one of the early investors in the company years ago.”

Tanmeyah will own 100% of the Netherland’s incorporated company Fatura following the acquisition, and the founders of the startup will continue to oversee the firm as part of the Tanmeyah management team while becoming Tanmeyah shareholders.

Meanwhile, Fatura stockholders will get a mix of internally generated cash and Tanmeyah treasury shares.

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