Back to the complete issue
Thursday, 16 June 2022

EFG’s Tanmeyah acquires B2B marketplace Fatura

EFG Hermes’ microfinance arm Tanmeyah has acquired B2B e-commerce marketplace Fatura in a stock and cash transaction, it said in a statement (pdf) yesterday. The acquisition will allow Tanmeyah access to Fatura’s growing network of merchants, which it would use to fill a large gap in the B2B credit market, Tanmeyah CEO Hossam AlNaggar told Enterprise. Meanwhile Fatura will be able to benefit from Tanmeyah’s broad client network and solid revenue streams, he added. AlNaggar declined to disclose the value or number of shares involved in the transaction.

No operational changes at Fatura: The founders of Fatura will still helm and manage the business, while becoming shareholders in Tanmeyah. Fatura’s shareholders will also receive a combination of cash and existing Tanmeyah treasury shares.

What they said: “Our new consolidated product and service offerings confirm our focus on supporting the Egyptian economy from the ground up as they will aid microenterprises in ordering inventory from wholesalers through a one-of-a-kind digital marketplace,” Tanmeyah CEO Hossam AlNaggar said. “We see a huge financing gap in the B2B segment and, by joining forces, we will be able to power digital lending and cover more sectors in Egypt.”

Tanmeyah’s acquisition sees the exit of several VCs: Cairo Angels, Disruptech, EFG-EV, Egypt Ventures and Khwarizmi Ventures all invested in Fatura during its two funding rounds in 2020 and 2021. The move represents one of the “biggest and quickest” exits by Cairo Angels, which was the first to buy a ticket in Fatura, our friends there tell us. The company raised USD 1 mn in its initial round, which was followed by a USD 3 mn pre-series A round in 2021.

About Fatura: Backed by EFG EV Fintech, Fatura’s marketplace was launched in 2019 to connect wholesalers and manufacturers with retailers in different industries, and mostly operates in the fast-moving consumer goods industry. It also provides buy now pay later services and has a footprint in 22 governorates.

About Tanmeyah: Established in 2009, Tanmeyah offers financing programs and support to microenterprise owners to help develop their businesses and facilitate access to finance. By the end of 1Q2022, Tanmeyah’s total number of clients had grown to reach 391k and its portfolio reached c.EGP 3.9 bn — its highest level since its inception.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.