African startups are taking over: MNT-Halan raises a whopping $400 million in funding round

The funding came from a mix of sources, including a $200 million investment from Chimera Abu Dhabi for 20% equity and $140 million from two securitised bond issuances.
The increased investment in the African and Middle Eastern regions is part of a growing trend driven by the rise of innovative fintech startups and the growth potential in the tech-savvy, young consumer market.

African startups are attracting more investment as the region continues to grow in the global financial sector. This is exemplified by the recent funding round of MNT-Halan, Egypt's leading fintech firm, which raised $400 million in the largest funding round in the Middle East and Africa over the past 12 months. This funding takes MNT-Halan's valuation to over $1 billion, showcasing the continued confidence in the firm's technology, value proposition and management team.

MNT-Halan is working to bring seamless financial services to the unbanked and underbanked customers in Egypt and the surrounding region. Its digital ecosystem includes business loans, consumer finance, payments, and e-commerce, all backed by its proprietary technology, Neuron. The company has 1.3 million monthly active users and serves over 5 million customers in Egypt, with over 2 million borrowers and 3.5 million financial clients.

Chimera Abu Dhabi invested more than $200 million in MNT-Halan for over 20% equity, whilst the fintech firm also raised $140 million through two securitised bond issuances and is in advanced stages of closing an additional $60 million from international investors. The two securitisations, worth $140 million, were made through Tasaheel Microfinance Company and Halan Consumer Finance, and oversubscribed with the participation of leading regional and local financial institutions such as Commercial International Bank, Abu Dhabi Commercial Bank, National Bank of Egypt, and Al Ahli Bank of Kuwait.

The additional funding will support MNT-Halan's growth and help it further its mission to offer cutting-edge financial products and services, both locally and internationally, to empower the underserved. The company has the capacity to securitise up to $250 million in its securitisation programme, fueling its growing loan book.

Investment in the Middle East and Africa (MENA) region has increased in recent years, with the fintech sector being particularly attractive to investors. The growing number of young, tech-savvy consumers in the region has immense growth potential, making it a hotbed for venture capital and private equity investment. This trend is further reinforced by the recent funding round of MNT-Halan, which attracted $400 million in investment.