- Cairo-based fintech Fawry plans to raise $50.8 million of growth capital through a rights issue to existing shareholders, to be used to fund its expansions in financial services for both consumers and merchants as well as position the company as a super app.
- Founded in 2008 by Ashraf Sabry and Mohamed Okasha, Fawry is a payment gateway serving the banked and/unbanked merchants and consumers in Egypt. It offers ways to pay bills and other financial services.
- A portion of the proceeds will also be directed towards Fawry’s investment strategy, which includes investments in high growth startups and fintech that complement Fawry’s offering through e-commerce, logistics, fintech services, insuretech among other verticals.
- The company’s board of directors has approved the creation of an American depositary shares programme, exploring a listing in the United States in connection with a potential SEC-registered secondary offering.
Fawry for Banking and Payment Technology Services S.A.E. (the “Company”, FWRY.CA on the Egyptian Exchange) announced today its plans to raise EGP800 million ($50.8 million) of growth capital through a rights issue to existing shareholders. The proceeds will be used to fund a new chapter of expansions in financial services for both consumers and merchants.
In addition to growing the Company’s offerings on MyFawry, the offering will help position the Company at the forefront of the Super App opportunity in Egypt. Moreover, the Company will continue to invest in strengthening its position on merchant acquiring as well as supply chain solutions. A portion of the proceeds will also be directed towards executing the Company’s investment strategy, fast-tracking innovation and supporting the budding ecosystem of high growth startups and fintech that complement Fawry’s offering through e-commerce, logistics, fintech services, insuretech among other verticals.
The Company’s board of directors, including the directors representing the main shareholders of the Company (whether representing institutional investors or financial institutions), have approved the proposal to increase the capital to finance the company’s growth plans in the event that the necessary shareholder and regulatory approvals are obtained.
The Company’s board of directors also approved the creation of an American Depositary Shares (“ADS”) programme and is exploring a listing in the United States in connection with a potential SEC-registered secondary offering. The timing, number of ADSs and price of the proposed offering have not yet been determined. The proposed offering is subject to market conditions, shareholder and regulatory approvals, and there can be no assurance as to whether, or when, the offering may be completed or as to the actual size or terms of the offering.
These materials are not an offer for the sale of any securities in the United States. The securities may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Any public offering of securities will be made by means of a prospectus that may be obtained from the Company and that will contain detailed information about the Company and management, as well as financial statements.