Egypt fintech firm MNT-Halan securing $400 million in new finance

Chimera Investment

01/02/2023 07:40

CAIRO, Feb 1(Reuters) - Egyptian microfinance lending
and payments company MNT-Halan is securing $400 million in new
equity and finance, bringing its valuation to more than $1
billion, the company said in a statement on Wednesday.
    The investments include an equity stake of at least 20% of
MNT-Halan worth more than $200 million taken by private equity
firm Chimera Abu Dhabi. Another $60 million in primary capital
is being secured from international investors, the statement
said.  
    These investors include the International Finance
Corporation (IFC), according to data on the IFC's website. 
    MNT-Halan obtained $140 million in financing by securitising
part of its loan book, the statement said. 
    MNT-Halan provides small- and micro-business lending,
payments, consumer finance and e-commerce, the company said. It
has more than 5 million customers in Egypt, of which 3.5 million
are financial clients and 2 million are borrowers. About 1.3
million of the customers are active monthly. 
    New legislation and regulatory changes in Egypt, the Arab
world's most populous country, have been helping attract a surge
in new fintech investments and change the way the country's
largely unbanked citizens do business.
    "Following the completion of these investments, MNT-Halan’s
valuation will exceed $1 billion," the statement added. 
    Previous investors in MNT-Halan include Cairo-based Lorax
Capital Partners, and Middle Eastern venture capitalists Algebra
Ventures, DisrupTech, Endeavor Catalyst, Egypt Ventures, MEVP
and Wamda.
 (Reporting by Patrick Werr. Editing by Gerry Doyle)
 ((patrick.werr@thomsonreuters.com;))