Egyptian fintech MNT-Halan raises $340m in equity, debt funding to become top funded Egyptian startup
Egyptian fintech company MNT-Halan is now arguably the best-funded startup in the country after securing $200 million in equity funding, plus a further $140 million in debt.
Having started life as a ride app for two and three wheelers back in 2018, MNT-Halan has morphed into a super app of sorts, and in the process become Egypt’s largest and fastest growing lender to the unbanked.
The startup’s proprietary fintech ecosystem connects customers, suppliers and micro-enterprises through its consumer-facing app, merchant app, distributed lending and payment processing software and payment solutions, in addition to offering services such as ride-hailing and logistics.
Disrupt Africa reported in September 2021, the company had secured an investment of USD 120 million from major global and regional growth investors, and it has now raised an additional USD 200 million in equity from Chimera Abu Dhabi, a private investment firm that manages a diversified portfolio of listed and unlisted stocks of both local and regional markets.
The investment comes in exchange for over 20 percent of the company, with MNT-Halan also in advanced stages of discussions with leading international investors to raise an additional USD 60 million in seed capital. Following the completion of these investments, MNT-Halan’s valuation will exceed USD 1 billion.
The company also announced two securitizations totaling USD 140 million through its subsidiaries Tasaheel Microfinance Company (Tasaheel) and Halan Consumer Finance (Halan) with Commercial International Bank (CIB), Egypt’s largest private sector bank. Tasaheel has securitized $100 million of its loan book in second issue of the securitization program. Halan Consumer Finance has securitized US$40 million of its loan book in its first securitization since inception in 2021. Both issues were oversubscribed.
According to MNT-Halan, the offerings reflect the high quality, diversity and granularity of the combined securitized loan books, consisting of 246,000 contracts and a robust repayment capacity. The proceeds will provide impetus to the company’s growing loan book, given the growing demand in light of the current inflationary environment. MNT-Halan has the capacity to further securitize up to USD 250 million in its securitization program.
MNT-Halan founder and CEO Mounir Nakhla said as one of the region’s foremost and most progressive investors, Chimera Abu Dhabi brought a unique and dedicated understanding of its business.
“Having the support of Chimera Abu Dhabi is a significant support for the execution of our strategy. The timing of the transaction is also a testament to our ability to significantly grow our revenue and open new revenue streams while growing our bottom line, despite the macroeconomic situation,” he said. “I’m excited for what lies ahead as we continue to grow both organically and inorganically by providing cutting-edge financial products and services locally and internationally to empower the underserved.”
“We are thrilled to be part of Egypt’s biggest fintech success story. MNT-Halan’s upward trajectory and momentum reflects the management team’s realization of its extraordinary vision to transform a high-touch business by seamlessly adding a unique proprietary technology platform while increasing product depth for its target customer segment, said Seif Fikry, CEO of Chimera Abu Dhabi. .
