The Egyptian fintech sector is witnessing a surge in debt financing as major players turn to securitization and bond issuances to fuel growth. The latest to join the trend is Fawry, the country’s leading digital payments company, whose subsidiary Fawry for Micro, Small, and Medium Enterprises (MSMEs) has successfully issued its first securitized bonds worth EGP 497.5 million ($10 million).
The move signals a broader shift in Egypt’s fintech landscape, where startups and established players alike are increasingly exploring alternative funding mechanisms beyond traditional equity financing.
The bond issuance, approved by Egypt’s Financial Regulatory Authority (FRA), is the first tranche of a larger securitization program aimed at expanding Fawry’s lending operations for SMEs. Rated A- (investment grade) by Middle East Ratings and Investor Services (MERIS), the bonds are structured as a single tranche with a 13-month maturity.
The securitization is backed by a portfolio of secured financial rights, reflecting the strength of Fawry’s credit underwriting standards. CI Capital, acting as financial advisor and bookrunner, facilitated the deal, which saw strong investor demand.
Alexander Levchenko, CEO of Fawry for MSMEs, framed the issuance as a strategic step to diversify funding sources and meet Egypt’s growing SME credit demand.
“This reflects confidence in our business model and the broader SME sector,” he said.
Ashraf Sabry, Fawry’s CEO, added that the A- rating validates the company’s financing standards and market credibility.
Fawry’s bond issuance follows a wave of similar moves by Egyptian fintechs looking to reduce reliance on venture capital amid a global funding slowdown. Earlier this month, MNT-Halan’s subsidiary Tasaheel issued EGP 2.5 billion ($49.4 million) in corporate bonds, while Islamic fintech Bokra made headlines with a EGP 3 billion ($59 million) sukuk issuance — a rare feat for a startup.
The trend highlights a growing appetite for non-dilutive financing in Egypt’s startup ecosystem, particularly as founders seek alternatives to equity deals that often come with heavy dilution.
Fawry’s latest push into SME financing comes as Bokra, a fast-growing Islamic fintech, gains traction with its revenue-based financing (RBF) model. Unlike traditional loans or equity, Bokra’s Sharia-compliant approach provides capital in exchange for a percentage of future revenues, making it an attractive option for startups wary of debt burdens or loss of ownership.
Bokra’s recent $3 million investment in digital pharmacy distributor iSupply — structured as a revenue-sharing agreement — has sparked discussions about the future of alternative startup financing in Egypt.
“Our model aligns with founders who want growth without dilution,” said Ayman El Sawy, Bokra’s founder and CEO.
Fawry, traditionally focused on consumer and SME lending, appears to be adjusting its strategy in response. Ahmed Ibrahim, Head of Business Sector at Fawry Finance, recently stated the company’s intent to “embark on a new phase of supporting entrepreneurs,” particularly targeting e-commerce sellers and small businesses.
While debt financing offers advantages, it’s not without hurdles. Revenue-based models require transparent cash flows and strong contractual enforcement — areas where Egypt’s regulatory framework is still evolving.
Fawry’s established brand and distribution network could give it an edge, but Bokra’s niche focus on Islamic finance and flexible structures presents stiff competition.
As Egypt’s fintech sector matures, the rise of bonds, sukuk, and revenue-sharing deals suggests a more diversified funding landscape. For founders, this could mean more options — but also more complexity in choosing the right financing mix.
Fawry’s latest bond issuance is a test case for whether traditional players can stay ahead in a market where innovation in financing is becoming as crucial as innovation in technology itself.