One of the unicorns in the African fintech space is making a big plan to expand its growth and financial operation by raising new fund and listing in the U.S.
Fawry, the Egyptian payment firm, has announced its plans to raise EGP 800 million ($50.8 million) of growth capital through a rights issue to existing shareholders. The fintech is pushing to onboard other services in addition to payments.
Thus, the new fund will be used to accelerate a new chapter of expansions in financial services for both consumers and merchants.
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The plan also includes growing the Company’s offerings on MyFawry, with the aim to prep the Company for its Super App ambition in Egypt. Moreover, the Company will continue to invest in strengthening its position on merchant acquiring as well as supply chain solutions.
A portion of the proceeds will also be directed toward executing the Company’s investment strategy, fast-tracking innovation, and supporting the budding ecosystem of high-growth startups and fintech that complement Fawry’s offering through e-commerce, logistics, fintech services, insurtech among other verticals.
The Company’s board of directors, including the directors representing the main shareholders of the Company (whether representing institutional investors or financial institutions), have approved the proposal to increase the capital to finance the company’s growth plans in the event that the necessary shareholder and regulatory approvals are obtained.
The Company’s board of directors also approved the creation of an American Depositary Shares (“ADS”) program and is exploring a listing in the United States in connection with a potential SEC-registered secondary offering. The timing, number of ADSs and price of the proposed offering have not yet been determined. The proposed offering is subject to market conditions, shareholder and regulatory approvals, and there can be no assurance as to whether, or when, the offering may be completed or as to the actual size or terms of the offering.
“These materials are not an offer for the sale of any securities in the United States. The securities may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Any public offering of securities will be made by means of a prospectus that may be obtained from the Company and that will contain detailed information about the Company and management, as well as financial statements,” the company said in a statement.
Since it was founded in 2008 by Ashraf Sabry and Mohamed Okasha, Fawry has grown to become one of the biggest payment platforms in Africa, serving the banked and unbanked. The company owes part of its success to a diversified business model which includes cash, credit card, mobile wallet and B2B financial services. Fawry has moved from 5000 points of services in two cities to 225,000 points of service in 300 cities nationwide.
