Jon Lubwama
Background and Founding:
Fawry was founded in 2008 by Ashraf Sabry. The company emerged from the need to provide convenient and secure payment solutions to Egypt's rapidly growing population, where traditional banking infrastructure was often inaccessible or inefficient. As of 2023, it is one of Egypt’s biggest startups and serves about 30m customers all over the country.
Funding Rounds:
Fawry's early funding rounds were crucial for its growth and expansion. The startup secured initial investments from various sources, including angel investors and venture capital firms. Notable investors in Fawry include the International Finance Corporation (IFC), a member of the World Bank Group, and the Egyptian American Enterprise Fund (EAEF). These investments provided Fawry with the capital needed to develop its technology, expand its network of payment outlets, and enhance its service offerings.
Services and Market Reach
Fawry initially focused on providing bill payment services, allowing users to settle utility bills, telecommunications bills, and other expenses through its network of payment outlets, which included retail stores, banks, and kiosks. Over time, Fawry diversified its offerings to include additional services such as mobile phone top-ups, online payments, and digital wallets. This expansion broadened Fawry's market reach and solidified its position as a leading fintech company in Egypt.
Growth and User Base
Fawry experienced rapid growth in its user base as it expanded its network of payment outlets and diversified its services. The convenience and accessibility of Fawry's payment solutions appealed to a wide range of consumers, from urban residents to those in rural areas. By providing a reliable and user-friendly platform for bill payments and financial transactions, Fawry attracted millions of users across Egypt, contributing to its success and market dominance.
Initial Public Offering (IPO)
In 2019, Fawry made history by becoming the first Egyptian fintech company to go public on the Egyptian Exchange (EGX). The IPO was a significant milestone for Fawry, underscoring its status as a leading player in Egypt's burgeoning fintech sector. The successful IPO raised substantial capital for Fawry, enabling further expansion and investment in technology and infrastructure.
Valuation Surpasses $1 Billion
In May 2019, Fawry’s valuation surpassed $1bn after its shares rallied on the Egyptian Stock Exchange becoming one of the few African startups ever to hit such a valuation joining the likes of Jumia, OPay, Interswitch, Flutterwave, and Andela among others. However, Fawry was not considered a unicorn because, at that point, it was already a publicly traded company.
Fawry's decision to go public on the Egyptian Exchange (EGX) was a strategic move that garnered significant attention from investors. The IPO was highly successful, with strong demand from both institutional and retail investors. The oversubscription of Fawry's shares reflected investor confidence in the company's business model, growth potential, and leadership team.
Market Dominance: Fawry's dominant position in Egypt's fintech landscape played a pivotal role in its valuation surpassing $1 billion. The company had established itself as the leading provider of digital payment solutions in the country, with a vast network of payment outlets and a wide range of services. Fawry's extensive reach and strong brand recognition resonated with investors, who viewed the company as a key player in Egypt's rapidly evolving digital economy.
Strategic Partnerships and Expansion: Fawry's strategic partnerships and expansion initiatives also played a significant role in its valuation growth. The company had formed partnerships with major banks, telecom operators, government agencies, and merchants, enabling it to broaden its service portfolio and reach new customer segments. Fawry's expansion into adjacent markets and its focus on innovation and technology-driven solutions underscored its commitment to long-term growth and value creation.
Investor Sentiment: Investor sentiment towards the fintech sector in Egypt was generally positive, driven by favourable macroeconomic conditions, increasing smartphone penetration, and growing consumer demand for digital financial services. Fawry's IPO came at a time of heightened interest in technology-driven startups, particularly those addressing financial inclusion and digitization challenges.