Sawari Ventures, an Egyptian investment firm, is set to introduce a fresh fund aimed at Egyptian startups, with CEO and Co-Founder, Hani Al Sanbati, specifying a target investment of around $150 million.
According to Al Sanbati, Sawari Ventures is focusing on diverse sectors, such as:
- Fintech
- Education
- Healthcare
- Green technology, and
- Deep tech initiatives,
areas it predicts continued growth.
He underscored that there remain favorable conditions for investing in tech enterprises adding that prevailing economic conditions will not hinder additional investments from stakeholders in these endeavors. He also espoused the belief that the initial hurdles faced by startups will not markedly obstruct their progress.
Egypt is one of the most affected startup investment destinations in 2023 as venture capital dried up across the MENA region and Africa. Investment in Egyptian startups declined by 17% in 2023 compared to 2022, with debt-free investment experiencing an even more substantial drop of nearly 40%, a recent report indicated.
🇪🇬FUNDING | #Egypt Most Affected as Venture Funding Fell Sharply Across #MENA region in 2023
2023 was a tough year for startups across all of MENA, with the $4 billion total funding raised representing just a 1.7% growth from 2022.
Notably, debt financing has become a more… pic.twitter.com/Li7J5wmgsi
— BitKE (@BitcoinKE) February 2, 2024
According to the report, the war in Ukraine precipitated a decline in the economy with currency devaluation ensuing and startups having to shift base to other countries in the Middle East and North Africa (MENA).
Approximately 35 percent of Sawari Ventures’ portfolio is allocated to the fintech sector, with a focus on digitizing the Egyptian economy and reshaping financial inclusivity trends.
Startups backed by Sawari Ventures are expected to secure investments spanning between $350 million to $500 million within the upcoming five years. Sawari aspires for Egypt to become a central investment hub in Africa and MENA highlighted by its investment in about 500 startups since its inception in the Arab world.
Some of its recipients include:
- Swvl
- MoneyFellows
- Instabug
- Si-Ware
- Blnk
- Elves
According to Al Sanbati, Sawari Ventures’ operational approach revolves around fostering investments and preparing companies to attract fresh funding.
“Exiting forms an integral part of our company’s strategy to inject investments into other ventures,” noting ongoing discussions regarding the potential exit from certain companies within a year and a half, provided these firms sustain growth with new investors.
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