Private equity investment in leading mobile payments platform
responsAbility-led investment company takes stake in Egyptian fintech leader
Zurich and Cairo, 3 October 2017 — A responsAbility-managed private equity company has invested in Fawry, the leading mobile payments platform in Egypt. Over the next few years, mobile payments are expected to generalize in the country and offer attractive growth opportunities for operators in the field. Through the capital increase, Fawry aims to fast-track the expansion of cashless payments and financial inclusion by leveraging their mobile platform and distribution network.
Fawry is the leading mobile payments platform in Egypt. Through a network of 65,000 agents, mostly small shop owners, Fawry allows 20 million customers to perform a variety of transactions such as utility bills payments, airtime top-ups or merchant transactions. Over the years, Fawry has created a platform connecting all clients’ channels of payments including bank accounts, credit cards and mobile wallets with any of the 23 banks connected to its platform. Fawry’s success has been to build acceptance and usage from clients as well as banks and merchants.
With more than 100% mobile penetration in Egypt, mobile payments are expected to generalize over the next few years. Given Fawry’s existing partnerships with industry leaders and public entities as well as the Egyptian government’s intention to offer cashless payment options to citizens for a broad range of services (social housing, driving license, traffic fines, transport), Fawry is ideally placed to benefit from the shift to dematerialized transactions.
The responsAbility-managed private equity vehicle will be invested in Fawry alongside Helios Investment Partners, one of the largest Africa-focused investment firms; MENA LTV Fund, managed by EFG Hermes, one of the region’s leading investment banks; Egyptian American Enterprise Fund, managed by Lorax Capital Partners, an Egypt-focused private equity firm; and the International Finance Corporation, a member of the World Bank Group.
Michael Fiebig, Head of Equity Investments Financial Institutions at responsAbility Investments AG, explained: “With its ability to provide convenient mobile access to financial services to both private individuals and small to medium-sized businesses, Fawry ideally complements our existing portfolio of equity investments in financial institutions in emerging economies.”
Speaking on behalf of Fawry, Ashraf Sabry, CEO, said: “Our efficient payment platform and network will enable us to provide financial services for sections of the population that have so far been underserved – at costs that will allow the model to be commercially sustainable. At the same, we aim to further spread cashless transaction in Egypt, thereby serving customers as well as commerce.”
Speaking on behalf of Helios Investment Partners, Alykhan Nathoo, Partner, said: “On behalf of the shareholder consortium I am pleased to welcome responsAbility as a partners in Fawry. We are excited about the value they can add to Fawry in helping further drive financial inclusion in Egypt.”
responsAbility Investments AG
Ulli Janett, Media Relations
+41 44 403 06 33
ulli.janett [at] responsAbility.com
Fawry is a pioneering E-Payment Network in Egypt, offering financial services to consumers and businesses through more than 65,000 locations and a variety of channels. Fawry offers a convenient and reliable way to pay bills in multiple channels (online, using ATMs , mobile wallets and retail points). Fawry’s network of retailers includes small groceries, pharmacies and stationaries, and post-offices, all equipped with point-of-sale machines – the same ones used for credit card payments.
Based on its own-patented technology, that is fully compliant with international security standards of the ISO 27001 and PA DSS certifications, Fawry performs more than a million and a half financial operations daily. Fawry services for businesses include collection services, customer acquisition, electronic cash, payment facilitation, and business-to-business collection centers.
About responsAbility Investments AG
responsAbility Investments AG is a leading asset manager in the field of development investments that offers professionally managed investment solutions to private, institutional and public investors. The company supplies debt and equity financing to firms in emerging economies and developing countries.
responsAbility currently has USD 3.3 billion of assets under management invested in over 550 companies in 97 countries. Founded in 2003, the company is headquartered in Zurich and has local offices in Bangkok, Hong Kong, Lima, Luxembourg, Mumbai, Nairobi, Oslo and Paris. Its shareholders include a number of reputable institutions in the Swiss financial market and its own employees. responsAbility is regulated by the Swiss Financial Market Supervisory Authority FINMA.