EFG Hermes’ Tanmeyah acquires B2B marketplace Fatura

Tanmeyah for Microfinance Services, a wholly-owned subsidiary of EFG Hermes Holding and Egypt’s leading provider of microfinance solutions, announced today that it has successfully concluded the acquisition of Fatura Netherlands B.V. (“Fatura”). Fatura, a rapidly-growing tech-driven B2B platform (B2B), has a 22-guvernorate footprint in Egypt. EFG EV Fintech is one of the main investors in Fatura since 2020.

Fatura brings together wholesalers, manufacturers, and retailers in one platform. Fatura provides a wide range of services to its users, including a marketplace that allows for live product viewing and price transparency as well as B2B buy-now-pay later services and support services.

H.E. Minister of International Cooperation commented on the deal. Dr. Rania A. Al-Mashat, said, “Tanmeyah’s acquisition of Fatura, backed by Egypt Ventures, and its accelerator “EFG EV Fintech”, which is a partnership with EFG Hermes Holding, comes in line with the Government of Egypt’s efforts to increase the involvement of, and to empower, the private sector, as a major driver of comprehensive and sustainable economic growth.” Al-Mashat added that Egypt Ventures, the first venture capital company in Egypt with a government contribution, has succeeded in maximizing the return on investment in many pioneering emerging companies in their fields.

This exit confirms that Fatura was a successful investment and allows Fatura to expand its business.

Egypt Ventures and its two business accelerators have invested in over 175 companies in Egypt since 2017. The next period will see more success stories in supporting start ups and exits that increase the participation of the private sectors in economic development.

Commenting on the acquisition, Karim Awad, Group CEO of EFG Hermes Holding said, “This acquisition marks a major milestone for Tanmeyah, which has grown to become a key player under our Non-Bank Financial Institutions (NBFI) platform.

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. As we build synergies through effective cross-selling which helps diversify our product and service portfolio, I am proud of the fact that all our NBFI brands continue the drive for Egypt’s digital transformation. 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.” The consolidation of Tanmeyah and Fatura as complementary businesses presents an opportunity for both to offer competitive and innovative solutions to the market.

The deal fits within Tanmeyah’s digital transformation strategy to drive business growth by leveraging Fatura’s platform to introduce new and disruptive financial products. It also allows Tanmeyah to access Fatura’s fast-growing network of merchants and fill a large gap in the B2B credit market.

Tanmeyah’s extensive geographical presence and broad client base will help Fatura expand its network of merchants and venture into new sectors of the B2B market, while its solid financial position and access to funding will help bolster Fatura’s growth. Hossam AlNaggar, CEO of Tanmeyah, also commented on the acquisition saying “We are extremely proud of this transaction. Fatura is a key addition to Tanmeyah’s portfolio, as it offers the company a faster route to digitally transform and develop.

The new consolidated product/service offerings reflect our commitment to supporting Egypt’s economy from the bottom up. They will assist microenterprises with ordering inventory from wholesalers using a unique digital marketplace. We see a significant financing gap in B2B. By joining forces, we can power digital lending to cover more Egyptian sectors. Microfinance continues to play a key role in helping low-income households to access opportunities, stabilize their income flows, and cope with inflationary pressure.”

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 c. EGP 3.9 billion — its highest level since inception. Hossam Ali, CEO of Fatura, also commented saying “I feel incredibly proud of what we have achieved at Fatura and I am super excited about the upcoming chapter in our story. We have created a solid startup with 500 believers backing us in just two years. This has impacted more than 60,000 merchants across the country.

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. We are working with Tanmeyah to change the way B2B in Egypt works. This will allow for more efficient trade, financing, and payment processing. Through this acquisition, Fatura will strongly benefit from Tanmeyah’s broad client base and solid financial position to unlock more opportunities.”

Fatura’s years of operation have seen an increase in Gross Merchandise Valu (GMV) as well as active users. This is especially due to the successful rounds of funding from six different venture capital fund and other prominent angel investors.

Tanmeyah will acquire 100% of Fatura Netherlands B.V. The founders of Fatura will manage the business under the Tanmeyah management team, while also becoming shareholders in Tanmeyah. Fatura shareholders will be able to receive both internally generated cash as well as existing Tanmeyah Treasury shares.

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