Egyptian fintech Bokra has invested $3 million in pharmacy distribution platform iSupply through an innovative revenue-sharing financing model, marking a potential shift in how startups in the region secure funding.
The deal, structured as a Sharia-compliant agreement, highlights the growing appeal of alternative financing mechanisms in Egypt’s startup ecosystem, particularly for asset-light, high-growth tech firms. It also underscores Bokra’s push into performance-based financing at a time when traditional venture capital and debt funding remain constrained by economic volatility.
A Flexible Financing Model
Bokra, which recently made headlines with a landmark sukuk issuance, is betting on revenue-based financing (RBF) as a viable alternative for startups that may struggle to access conventional loans or equity investments. Unlike traditional debt, RBF allows investors to recoup capital through a percentage of a company’s future revenues, reducing immediate repayment pressure on borrowers.
“At Bokra, we believe in supporting emerging technology companies that seek to make a positive impact,” said Ayman El Sawy, Founder and CEO. “Our partnership with iSupply reflects our commitment to fostering innovation in healthcare technology through Sharia-compliant, revenue-driven solutions.”
For iSupply, a digital platform connecting pharmacies with pharmaceutical wholesalers and manufacturers, the funding will support expansion and operational upgrades. The company’s data-driven system streamlines supply chain management, offering real-time inventory tracking and pricing transparency — a critical advantage in Egypt’s fragmented pharmaceutical market.
“This partnership will enhance our ability to improve supply chain efficiency and facilitate transactions for pharmacies,” said Ibrahim Imam, iSupply’s CEO and co-founder.
The iSupply deal follows Bokra’s recent 3 billion Egyptian pound ($58.9 million) sukuk issuance, the first of its kind for the fintech. That transaction, structured as an 84-month Mudaraba sukuk (a profit-sharing Islamic bond), was backed by institutional investors including Suez Canal Bank and Al Baraka Bank.
Bokra’s dual focus — on both institutional Islamic finance and startup funding — positions it as a hybrid player in Egypt’s financial landscape. The company, licensed by Egypt’s Financial Regulatory Authority (FRA), offers retail and SME investors fractional ownership in assets such as gold, real estate, and now, revenue-generating startups.
“We aim to reach broader segments of society and promote financial inclusion through Sharia-compliant solutions,” El Sawy said in a statement following the sukuk issuance.
A Shift in Egypt’s Startup Funding Landscape?
Egypt’s startup ecosystem has faced headwinds in recent years, with venture capital funding dropping sharply amid currency devaluation and inflation. Revenue-sharing models could provide a lifeline for asset-light startups that generate steady cash flow but lack collateral for traditional loans.
The deal represents an early test case for revenue-based financing in the Egyptian startup ecosystem, with the potential to unlock funding for tech startups that fall outside the traditional venture capital or bank lending models.
However, challenges remain. Revenue-sharing agreements require rigorous due diligence on a company’s cash flow projections, and not all startups may qualify. Additionally, Egypt’s regulatory framework for alternative financing is still evolving.
Bokra’s strategy aligns with Egypt’s push to expand Islamic finance, including sovereign sukuk issuances and regulatory reforms to attract Sharia-compliant investors. The company’s ability to secure institutional backing for its sukuk — and now, its venture-style investments — suggests growing confidence in Islamic fintech models.
With Egypt’s fintech sector still in growth mode, Bokra’s latest moves could set a precedent. If revenue-sharing financing gains traction, it may offer a new pathway for startups navigating an uncertain funding environment — while giving investors exposure to high-growth sectors without taking equity stakes.
For now, all eyes will be on iSupply’s performance. If the partnership delivers, Egypt’s startup scene may see more deals structured not around valuations, but revenues.