Exits.me aims to provide an online platform to ease M&As and investments and aid MENA SMEs and startups.
Cairo-based fintech startup Exits.me, an investment banking marketplace, has raised USD 1 million in funding in a pre-seed round. The round was funded with the support of UK-Based Exits.me, a number of Egyptian Angel investors including Omar Amer, Abdel Meguid Amer, Omar Wagdy, Adham Wagdy, and Ayman Essawy, Baseeta Investments Holding and Mawelni Holding for Financial Investments and the company’s founders.
Exits.me: Assisting smaller companies
The Egyptian fintech was founded by Mohamed Aboul-Naga, Ahella Al-Saban, and Ayman Al-Tanbouly in 2022 and aims to assist companies in the M&A process and in securing investments. Exit.me’s online platform, which also offers a comprehensive financial advisory service, seeks to create a system by which M&As are facilitated in a simple manner.
Exits.me was initially acquired by PIE, an M&A consultancy firm founded by Aboul-Naga, early this year. The company has created a beta version of its platform and is working to release a new platform to cater to what it is believes is an underserved segment of the market – funding and M&A support for SMEs and startups across the MENA region.
The founders seek to bolster activity within the MENA region by increasing investment awareness and spreading education on the importance of early investments in all verticals and business functions.
Barriers to entry
“We want start-ups and SMEs who are off the radar of conventional investment banks to have a user-friendly and automated means of engaging in M&A and investment opportunities,” said investor Omar Wagdy. The founders believe that businesses overlooked by investment banks due to their smaller ticket sizes are finding it hard to find opportunities for investment.
Other factors including high fee markups, and retainer costs required by traditional investment banks are also proving to be a barrier to entry for smaller companies, according to Exits.me.
The need for funding
In 2018, the Middle East alone had over three times the number of exits seen in 2012 and these numbers continue to grow. A report by E&Y, MENA recorded 359 M&A deals worth $42.6bn in 1H 2022 despite global market volatility. M&A activity saw a 12% y-o-y rise in deal count, largely led by the UAE, Egypt, Saudi Arabia, Morocco, and Oman.
“Exits.me’s team expects to see continued growth in the need for M&A/funding across the region within the next three to five years, and this fresh capital to Exits.me will address this increasing gap,” said investor Omar Amer.
Exits.me has already signed over 25 active sell/buy side advisory agreements, with 30 more in the pipeline, for a value of USD 150-200 million. The platform is currently procuring its crowdfunding license from the Financial Regulatory Authority (FRA) to manage and arrange crowdfunding campaigns, opening a new market for the MENA region and allowing individuals to make investments.
The beta platform can currently be accessed here.
MENA startups raised USD 378 million in August.