Egypt’s dominant e-payments provider, Fawry, is doubling down on its ambitions to become a one-stop shop for corporate financial services, spending 80 million Egyptian pounds ($1.6 million) to acquire controlling stakes in three domestic technology startups. The move, unveiled this week, sees Fawry taking majority ownership in enterprise resource planning (ERP) provider Dirac Systems, financial services specialist Virtual CFO, and software developer Code Zone.
The acquisitions, granting Fawry stakes of 51%, 56.6%, and 51% respectively, underscore the fintech giant’s aggressive push into the burgeoning market for business-focused digital solutions. Announced shortly after the launch of its “Fawry Business” platform, the deals are explicitly aimed at expanding this new corporate offering beyond basic payment processing and into a more integrated suite of services encompassing payroll, HR management, and advanced accounting functions.
Ashraf Sabry, Fawry’s Chief Executive, framed the acquisitions as a strategic deepening of the company’s capabilities. “These investments solidify Fawry’s position as a comprehensive provider of digital business solutions,” he stated, emphasizing the “seamless integration of e-payment solutions with advanced accounting and HR systems.” He added that the move reflects Fawry’s “confidence in Egyptian technology companies and local talent,” aiming to “support digital transformation initiatives and the cashless economy in Egypt.”
Dirac Systems, founded in 2014, brings to Fawry established expertise in ERP and business automation, while Virtual CFO, a younger firm established in 2019, specialises in financial and accounting services. Code Zone, the oldest of the three, founded in 2010, focuses on software development, particularly for the healthcare sector. The integration of these companies is intended to allow Fawry Business to offer tailored financial innovations to both small and medium-sized enterprises (SMEs) and larger corporations, enhancing its appeal to a wider spectrum of businesses.
Mohamed Hamed, CEO of Dirac Systems, hailed the acquisition as a “significant turning point,” anticipating that joining Fawry would allow his company to “expand our ERP solutions and enhance our impact on businesses of all sizes.” Ahmed Farouk, CEO of Virtual CFO, highlighted the potential for “comprehensive and integrated solutions to manage all financial, cash, and accounting affairs,” including the increasingly important domain of electronic invoicing. Mohamed Youssef, CEO of Code Zone, pointed to the synergy between his company’s software expertise and Fawry’s payment leadership, aiming to develop “advanced solutions that meet customer expectations” through integrated platforms.
The launch of Fawry Business earlier this month signaled the company’s intent to move beyond its core consumer-facing payment services and directly challenge emerging fintech rivals in the corporate space. The platform offers a range of tools including HR and payroll management, cash flow monitoring, and electronic payment processing. Innovative features such as the “Fawry Corporate Card,” developed in partnership with Banque Misr, and “Tap N Pay,” a software-based point-of-sale system, aim to further embed Fawry into corporate operations. The platform also controversially offers a daily investment fund promising high returns of up to 23 percent, a move that has raised eyebrows amongst some analysts given the inherent risks associated with such high-yield products.
Fawry’s expansion comes as Egypt’s fintech sector experiences rapid growth, buoyed by government initiatives to promote digital payments and financial inclusion. The Central Bank of Egypt’s Instant Payment Network has provided a crucial infrastructure, fostering innovation and attracting investment. However, this growth has also fostered intense competition. Startups like Swypex, which recently raised $4 million in seed funding, and MoneyHash are carving out niches in corporate financial management and payment solutions, challenging Fawry’s established dominance.
Swypex, for example, focuses on corporate cards and expense management tools, directly targeting areas where Fawry is now expanding. While Swypex and others are nimble and innovative, Fawry possesses formidable advantages. Its established network of over 300,000 service points across Egypt, its strong brand recognition, and its partnerships with major financial institutions like Banque Misr give it significant scale and resources. The latest acquisitions further bolster its capacity to offer integrated solutions and create a higher barrier to entry for smaller competitors.
Beyond domestic expansion, Fawry is also eyeing regional growth, particularly in Saudi Arabia, seeking to tap into remittances from the large Egyptian diaspora. This international ambition signals Fawry’s long-term vision to become a regional fintech powerhouse, not just an Egyptian leader.
Analysts suggest that Fawry’s aggressive expansion and vertical integration represent a significant challenge to smaller, more specialised fintech startups. While the market remains dynamic and innovation is rife, Fawry’s scale and resources are likely to consolidate its position as the dominant force in Egyptian fintech. The coming years will test whether smaller players can effectively differentiate themselves and carve out sustainable niches in the face of Fawry’s expanding reach, or whether the market will increasingly tilt towards the established behemoth. The Egyptian fintech landscape, while vibrant, may be heading towards a future dominated by a few large, integrated players, with Fawry leading the charge.