MNT-Halan raises USD 400 million in equity and debt financing from international and regional investors, with more to come.
MNT-Halan, an Egyptian fintech, has raised up to USD 400 million in financing from international and local investors. The round includes USD 260 million in equity financing and USD 140 million through two securitized bond issuances. Approximately USD 200 million was provided by Abu Dhabi–based Chimera Investments in exchange for 20% of the Egyptian digital lender and e-commerce platform. MNT-Halan now commands a post-money valuation of approximately USD 1 billion.
MNT-Halan’s wide range of offerings
Founded in 2017 by Mounir Nakhla and Ahmed Mohsen, MNT-Halan offers a range of financial and non-financial services including lending, buy now pay later, e-commerce, payments, and mobility to on-demand logistics. The company seeks to target the unbanked and unbanked populations in Egypt. Following the raise, the company aims to expand internationally and to move on a swap agreement with Netherlands-based microlending platform MNT Investments.
5 million clients
MNT-Halan lends to single small business owners or individuals who need lending to manage their businesses. According to the Egyptian startup, its digital ecosystem serves more than 5 million customers in Egypt, of which 3.5 million are financial clients and over 2 million are borrowers. The startup plans to launch a debit card for its customers by the end of March.
According to the company, it is presently Egypt’s largest lender to the unbanked: Total loans disbursed now exceed USD 2 billion per the company’s website. On average, businesses access USD 1,000 worth of loans while paying a 25% annual interest on the platform.
The two securitizations, totaling USD 140 million, that MNT-Halan secured last year are behind its lending operations. The fintech’s wholly owned subsidiary, Tasaheel, managed to secure these funds locally via a securitization program with the Commercial International Bank (CIB), Egypt’s largest private sector bank. It can further securitize up to USD 250 million, the company said. In addition to CIB, participating regional and local financial institutions include Abu Dhabi Commercial Bank, Al Ahli Bank of Kuwait, Al Baraka Bank and National Bank of Egypt.
A digital ecosystem
MNT-Halan’s primary business and main revenue generator is lending, however the company also offers a digital ecosystem of products, including e-commerce, FMCG delivery and mobile POS payments that feed its lending operations. Last June, the five-year-old company acquired Talabeyah, a B2B e-commerce platform that offers FMCG supplies directly to small merchants and retailers with next-day delivery. This move has allowed the company to provide loans to merchants or grocers, who then act as mobile agents to individual customers who frequent their shops.
The fintech claims to have made over USD 300 million in revenue last year.
MNT-Halan is currently Egypt’s only private billion-dollar company and was ranked as one of the most successful in terms of fund raising in 2022.