2022 was a brutal year for the Egyptian startup ecosystem. As the funding crisis took hold, startups grappled with a turbulent disintegration of their valuations. The resulting tremors reverberated across the sector, hitting Egyptian startups particularly hard. The first major casualty was Capiter, the Cairo-based B2B e-commerce platform that had raised $33 million in Series A funding to compete in the country’s growing retail space. By September that year, investors and the board moved decisively, ousting founders Mahmoud Nouh and Ahmed Nouh as CEO and COO.
Efforts to salvage Capiter initially attracted interest from local and Gulf-based companies. However, these plans unraveled amid escalating legal disputes between the founders and the board. Concerns over whether the company could rebuild trust among merchants and the public further compounded its challenges. Two years later, the final chapter of Capiter has been written: permanent closure.
Other casualties of the 2022 funding crisis, however, are determined to chart a different course.
When Launch Base Africa first reported the quiet demise of Cassbana in July this year, co-founder and CEO Haitham Nassar quickly dismissed any notion of closure. Founded in 2020, the Cairo-based company initially showed promise, helping financial institutions and businesses create lending solutions by analyzing customer behavior patterns.
Cassbana attracted over $1 million in funding from notable investors, including Disruptech, MSA Novo, Inclusive Fintech 50, and Endure Capital. But the sudden cancellation of a $2 million equity funding commitment from British International Investment (BII) — formerly CDC Group — dealt a crippling blow to the company’s prospects.
A former Cassbana officer, speaking on condition of anonymity, confirmed the cessation of operations, citing the company’s inability to generate sufficient revenue to sustain itself.
Still, Nassar insisted that Cassbana is far from finished. He attributed the company’s challenges to an incomplete funding round and emphasized that they were actively exploring new opportunities. While details remain limited, he hinted at upcoming announcements regarding expansions. However, weeks have passed without updates, despite the company once again propping up its website after a long hiatus and advertising open roles.
Founded in 2017, Brimore is another startup arising out of the ashes of the 2022 global funding meltdown that ravaged Egyptian startups. The startup set out to transform Egypt’s social commerce space. By building a parallel distribution network, it connected small manufacturers with a network of freelance sales agents, helping emerging brands reach consumers across Egypt’s 27 governorates.
Brimore raised over $30 million from investors, including the International Finance Corporation, Flourish Ventures, and Algebra Ventures. In January 2022, its $25 million Series A round valued the company at $100 million. However, as market conditions worsened, Brimore reportedly accepted a steep valuation cut in its next funding round.
The startup faced further turmoil in 2023 when a major team member Hassan Hisham tragically passed away in a car accident, leaving the company struggling to regain momentum in an increasingly competitive market.
While Brimore has not officially shut down, operations have been paused as the team recalibrates its strategy. Sources familiar with the matter revealed to Launch Base Africa that a major relaunch is in the works. Despite stepping back from day-to-day operations, co-founders Ahmed Sheikha and Mohamed Abdulaziz have hinted at a potential comeback, though concrete plans have yet to materialize.
The struggles of Capiter, Cassbana, and Brimore highlight the broader challenges faced by African startups. In recent years, high-profile collapses like Copia Global, Sendy, and 54gene have highlighted the volatility of scaling businesses in uncertain markets. Egyptian startups have faced additional headwinds, including inflation, currency devaluation, and a global funding slowdown.
Despite these setbacks, funding and otherwise, some Egyptian startups remain optimistic. The resilience of local founders and a gradual return of investor interest in Africa could pave the way for recovery. For these startups, the road ahead will require recalibrated strategies, sustainable growth models, and renewed trust from stakeholders.
The Egyptian tech ecosystem may be battered, but from the pulse on the ground, it looks far from defeated. Whether its players can turn the tide will depend on their ability to learn from the crises of 2022 and build toward a more stable future.