Proparco announced an investment in DisrupTech Ventures‘ early-stage venture capital fund to support the development of Egypt’s fintech sector and to help expand access to financial services in the country.
Proparco invested $5 million in DisrupTech, which intends to provide seed capital to up to 28 start-ups focused on financial technology services. Several investors, including Development Finance Institutions, Funds-of-Funds, and Family Offices, contributed $36 million to the fund. It will be a critical source of funding for Egyptian tech firms, which frequently struggle to raise capital to bring their innovations to market.
It is critical for Egypt’s digital transformation and financial inclusion to increase access to financial services, from making deposits to paying bills. Meanwhile, the amount of venture capital available in Egypt is just a quarter that of the emerging market average, though it has grown substantially in the past few years.
DisrupTech will provide advice and mentoring to the businesses it supports in addition to capital.
“Egypt is full of bright, talented founders but too often, they cannot secure the capital they need to expand their businesses, we are always excited about supporting entrepreneurs, increasing access to financial services and contributing to Egypt’s growth,” said Mohamed Okasha, Managing Partner from DisrupTech Ventures.
“We are pleased to partner with DisrupTech Ventures, which has already become one of the leading early-stage investors in Egypt. Thanks to its company-building track record and domain-specific expertise, DisrupTech is bringing much needed support to young companies in the region. This is in line with Proparco’s strategy to maximize impacts and to finance innovation, by fostering the emergence of a dynamic venture capital industry to back African entrepreneurs” added Françoise Lombard, Chief Executive Officer at Proparco.
DisrupTech was founded to help early-stage Fintech and Fintech-enabled digital services startups in Egypt. From the start, the team takes a hands-on approach, collaborating with talented entrepreneurs to make their vision a reality. One of its primary goals is to serve as a catalyst for the transformation of Egypt’s larger financial services ecosystem.
DisrupTech, which was founded 24 months ago, has invested 40% of its fund size in technology start-ups to date. DisrupTech was founded by a diverse group of financial technology veterans and entrepreneurial investment professionals with international and Egyptian experience.
Proparco’s investment in DisrupTech is part of its Venture Capital program, which has seen it invest more than €120 million in African early-stage companies and venture capital funds since 2020.
