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MNT - Halan , a fintech unicorn out of Egypt , is on a integration march . The microfinance and payment startup has raised $ 157.5 million in funding and is using the money in part to fund the acquisition of another fintech , Tam Finans , to amplify into Turkey .
Tam Finans provides financing to micro - enterprise and SMEs . It presently engage 39 branches in 26 metropolis across Turkey and claims to curb a 40 % grocery store percentage in the land . The combined entity ensue from this deal will have a loanword record of “ slightly less than $ 1 billion , ” according to the CEO of MNT - Halan , Mounir Nakhla .
Exact financial terms of the deal were not let out , but one factor of the deal was in shares : Actera , one of Turkey ’s largest private fairness firm , and the London - establish European Bank for Reconstruction and Development ( EBRD ) jointly own Tam Finans MNT - Halan , and both will become shareowner in MNT - Halan .
This modish financial backing come about 19 month after MNT - Halan raised$400 millionin fairness and debt , which valued the troupe at $ 1 billion after one of the backers , Chimera Investments , acquired a 20 % interest for $ 200 million .
MNT - Halan is not break its exact rating with this in vogue round except to note that it is now over $ 1 billion . Tam Finans had raised over $ 30 million since its origination , in the first place through debt , consort to PitchBook .
Nakhla — who co - founded the company with CTOAhmed Mohsen — said an interview with TechCrunch that his company began discussions with Tam Finans about 18 month ago . The Egyptian fintech see it as a counterpart for expanding its existing business , “ a great submission into the Turkish market . ”
“ Turkey is a country just two hours away from Egypt with a gross domestic product that ’s in the range of a trillion dollars and a big population , ” he added . “ We see a huge opportunity to capitalize on the various product we ’ve progress in Egypt . ” That includes , he said , its core banking system product Neuron ; its backend organisation ; its app development and other service . “ We destine to leverage Tam Finans ’ size , distribution networks , direction expertise and financial potential drop to have a stiff footing and significant front in Turkey . ”
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Alongside upselling existing customer , there are also opportunity to get on entirely fresh ace . More than 30 % of Turkey ’s universe remains unbanked , and that has import opportunity for many fintech hopefuls . Since the economic crisis in 2018 , a number of fintechs like Tam Finans have jump up to provide financing to unbanked segment in Turkey , operate in credit entry marking , quotation consolidation , and alternative loaning domains .
Tam Finans speciality is “ invoice factoring , ” a soma of substitute funding aimed at micro , small , and medium enterprises ( MSMEs ) , where Tam Finans buys up business ’ striking invoices in exchange for upfront cash . The party has developed a credit marking scheme that allows it to digitally approve and disburse loans to over 20,000 active businesses . on the whole , it has a loan portfolio of about $ 300 million .
MNT - Halan itself recently obtained a factoring license and plan to venture into that space in Q4 2024 to complement its current small and micro - business lending business .
So far , MNT - Halan claims to have disbursed over $ 4.5 billion in loans and served more than 7 million customers in Egypt ( 5 million financial client and 3 million borrowers ) , an step-up from the $ 2 billion in loanword disburse to 5 million customer last January . At the time , MNT - Halan , which self - describes as Egypt ’s largest loaner to the unbanked , said businesses access $ 1,000 worth of loanword on modal while paying a 25 % yearly interest .
loaning is MNT - Halan ’s primary business organization and main revenue generator , but it has a range of other products , too , including consumer finance , postpaid card , e - wallets , rescue , payments , eastward - commerce , FMCG deliverance ( via anacquisition ) and mobile POS defrayal — all of which feed into the bigger lending operation .
This April , it launched a super app to bring all these services under one roof . Nakhla is most enthusiastic about the growth of the prepaid card mathematical product , which access consumer finance limits on the app and permit user to browse with flexible payment option .
“ Nubank is an inspiration , ” he state . “ We ’ve get about 1.8 million app users on a quarterly basis and the card is the next bragging affair . ”
MNT - Halan claims to have write out over 130,000 cards since its launch four months ago and is currently issuing between 1,000 and 2,500 circuit card daily , consort to Nakhla .
The fintech lay claim to have made over $ 300 million in revenue in 2022 , and while it ’s not disclosing more current number , taxation have farm 35 % year - over - twelvemonth since then and is projecting the same growth ( in dollar terms this class ) despite the outrageous devaluation of the Egyptian pound . “ Our 2024 forecast is that we expect the combined entities to hit between $ 500 - 600 million in revenues , ” said Nakhla .
MNT - Halan ’s acquisition of Tam Finans follows its enlargement into Pakistan in March , where it acquire a microfinance bank , and it is “ explore other big moves , ” consort to Nakhla .
This growth investment raised from exist investors including DPI ( Development Partners International ) , Lorax Capital Partners , monetary resource managed by Apis Partners LLP , Lunate , and GB Corp , will facilitate these move . The investment funds also include $ 40 million from the IFC , money the World Bank subsidiarydisclosed it was investingin the company last January . With this round , MNT - Halan has prove over $ 630 million in equity and debt .
