DisrupTech Ventures, an Egyptian early-stage venture capital fund, raises USD 5 million from Proparco to support Egypt’s fintech sector.
DisrupTech Ventures, an early-stage venture capital fund, has secured a USD 5 million investment from Proparco, the private sector financing arm of Agence Française de Développement Group (AFD Group). to support Egypt’s fintech sector and provide financial services to the country’s population. The VC firm, which has raised USD 36 million from investors, aims to provide seed capital to up to 28 startups, with a primary focus on financial technology services.
DisrupTech will also provide advice and mentorship to the businesses it supports. Proparco’s investment is part of its Venture Capital program, which has invested over EUR 120 million in African early-stage companies and venture capital funds since 2020.
DisrupTech – Expanding financial services, driving digital transformation
Expanding access to financial services, from making deposits to paying bills, is a crucial aspect of Egypt’s digital transformation and financial inclusion. However, the amount of venture capital available in Egypt is only a quarter of the emerging market average, according to Disrupt Tech, making it difficult for Egyptian tech companies to raise capital. DisrupTech aims to be an essential financing source for these companies, helping them bring their innovations to market.
Hands-on support for fintech startups
DisrupTech was established to support early-stage fintech and fintech-enabled digital services startups, with a focus on Egypt. The team takes a hands-on approach from the outset, partnering with talented entrepreneurs to transform their vision into reality. One of its main goals is to be a catalyst in transforming the larger financial services ecosystem in Egypt.
“We are pleased to partner with DisrupTech Ventures, which has already become one of the leading early-stage investors in Egypt,” said Françoise Lombard, Chief Executive Officer at Proparco. “Thanks to its company-building track record and domain-specific expertise, DisrupTech is bringing much-needed support to young companies in the region. This is in line with Proparco’s strategy to maximize impacts and to finance innovation, by fostering the emergence of a dynamic venture capital industry to back African entrepreneurs.”
African startups were forced to double their debt financing last year due to a lack of available funding.
Fintech was the leading sector for startup investment across Africa in 2022.