The International Finance Corporation (IFC), a member of the World Bank Group, announced Wednesday the investment of $5 million a new venture capital fund from Disruptech Ventures to support development in Egypt’s fintech sector and help expand access to financial services in the country, the institution said in a press release.
The future financial infusion according to the statement aims to provide seed capital to up to 25 startups with a particular focus on financial technology services. Disruptech will also provide advice and mentorship to the businesses it supports.
The fund also, according to the press release, raised $25 million from several investors and will be an important financing source for Egyptian tech companies, which often struggle to raise capital to bring their innovations to market. Only 33.3 per cent of the Egyptian people have a bank account.
“Egypt is full of bright, talented founders but too often, they cannot secure the capital they need to expand their businesses,” said Mohamed Okasha, Managing Partner from Disruptech Ventures.
“This fund is designed to change that, and support the development of Egypt’s fintech/fintech-enabled sector.” “IFC’s investment in Disruptech will not only nurture innovative start-ups in Egypt but also expand access to financial services, crucial in building financial inclusion and supporting broader economic growth in Egypt,” said Yasmine El-Hini, IFC Egypt Country Officer and Acting Country Manager for Egypt and Libya.
Disruptech, 18 months old, has invested 30% of its fund size in financial technology startups to date. Its manager Mohamed Okasha is the former Managing Director of Egypt’s largest electronic payment provider, Fawry, a company he also co-founded.
IFC invests $5 million in Egypt-based Fintech venture capital
