According to a report by Disrupt Afrika, unlike much of the continent where fintech attracts the most innovation, the startup activity in the North African giant is led by e-commerce and retail sector with 117 startups out of a total of 562 startups identified by the research.
That number of startups has trended upwards since 2015 boosted by government action and increased venture interest
However, according to the report, in 2021, fintech startups have led as Egypt startups raised more funding than startups from other areas in Africa.
According to the research, the $403.5 million raised by 82 Egyptian start-ups was only out-funded by those in Nigeria.
Moreover, while e-Commerce and e-Health have usually led in startup funding, in 2021, for the first time, fintech startups have accumulated more funding in Egypt at over 38% with payments and remittance platforms dominating in the fintech space.
This reflects a consistent growth trend in the last 4 years.
Here is the proportion of fintech funding in the last 4 years in Egypt:
2017 – Less than 1%
2018 – 3%
2019 – 4%
2020 – 9%
2021 – 38%
Some of the leading fintech startups in terms of number of employess include Paymob, MNT Halan, Masari, and Raseedi.
Interestingly, 49.2% of the country’s 32 fintech ventures are reported to have taken part in some kind of acceleration or incubation programme.