Fawry Finance, a key player in Egypt’s digital payments and financing landscape, is stepping up efforts to re-engage with the country’s growing community of entrepreneurs, in what industry observers see as a response to the rise of Bokra, a fast-growing Islamic fintech that is reshaping startup financing models.

Ahmed Ibrahim, Head of Business Sector at Fawry Finance, confirmed the company’s intent to “embark on a new phase of supporting entrepreneurs,” particularly targeting online retailers and small business owners. “We seek to enable them to grow their businesses and achieve maximum success rates through flexible and effective financing solutions,” he said in a statement seen by Launch Base Africa.

The move follows a string of high-profile deals by Bokra, whose recent $3 million investment in iSupply — a digital pharmacy distribution platform — has stirred discussions around the future of non-equity startup funding in Egypt.

Founded in 2018 and licensed by the Financial Regulatory Authority (FRA), Fawry Finance has until recently focused primarily on consumer and SME lending. Its shift toward early-stage and digital-native enterprises signals a strategic recalibration at a time when conventional funding channels remain subdued.

Bokra’s recent success lies in its embrace of Sharia-compliant, revenue-based financing (RBF), which provides capital in exchange for a share of future revenues rather than equity or collateral. The company’s investment in iSupply was structured as a revenue-sharing agreement tailored to support the startup’s scale-up needs while minimizing debt burdens.

“Our partnership with iSupply reflects our commitment to fostering innovation in healthcare technology through Sharia-compliant, revenue-driven solutions,” said Ayman El Sawy, Bokra’s founder and CEO.

The deal offers a glimpse into a financing structure that is gaining traction in emerging markets: cash flow-driven, non-dilutive, and adaptable to Islamic finance principles. For iSupply, which connects pharmacies with suppliers through a real-time inventory and pricing platform, the capital will fund geographic expansion and operational infrastructure.

Crucially, the investment follows Bokra’s landmark sukuk issuance — worth EGP 3 billion (approx. $59 million) — an unprecedented move for a fintech of its size. That 84-month Mudaraba sukuk was backed by institutional players such as Suez Canal Bank and Al Baraka Bank, and positioned Bokra as both a retail-focused platform and an institutional-grade Islamic financier.

A Crowded but Shifting Landscape

Egypt’s fintech ecosystem, once buoyed by an influx of venture capital, has slowed under the weight of inflation, currency devaluation, and rising global interest rates. Funding for early-stage ventures has become increasingly scarce, pushing founders to seek alternative sources of capital.

While Fawry remains Egypt’s most visible fintech brand, its traditional model — based on installment-based credit and merchant services — has faced pressure to adapt. Analysts suggest that Bokra’s agility in structuring RBF and sukuk-based products gives it an edge in a market increasingly demanding flexible, faith-aligned financing.

Despite growing interest, revenue-based financing remains a niche in Egypt. Its success depends on robust data infrastructure, cash flow transparency, and enforceable contracts — requirements that many early-stage startups still struggle to meet. Moreover, Egypt’s regulatory environment for alternative finance is still maturing, with limited precedents for enforcement and investor protection in RBF arrangements.

Fawry’s advantage may lie in its established distribution networks and brand recognition. With over a decade in operation and public listing on the Egyptian Exchange, the company is well-positioned to offer blended financial products — combining traditional credit with newer, revenue-linked tools.

“Fawry doesn’t need to imitate Bokra,” an ecosystem expert told Launch Base Africa. “It needs to bring its scale and credibility to where the market is going.”

As Egypt’s digital economy matures, the funding models underpinning its growth are also evolving. Whether Fawry’s latest pivot can reassert its dominance among Egypt’s tech-savvy entrepreneurs remains to be seen. Much will depend on execution, flexibility, and the ability to compete with the likes of Bokra — not just on capital, but on creativity.

If iSupply succeeds in scaling efficiently with revenue-based funding, more founders may opt for models that prioritize sustainability over valuation, and recurring revenue over dilution.

In an increasingly complex financial environment, where macro risks are as consequential as business fundamentals, Egyptian startups may ultimately benefit from having multiple paths to funding.