Through Its Investments In Fintech Innovation And Financial Inclusion, Nclude Is Driving Egypt's Digital Transformation Nclude has funded startups across fintech such as Paymob, Khazna, Lucky, and FlapKap, and it also has done investments in proptech, healthtech, foodtech, and agritech.
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Founded in 2022, Nclude is an investment firm headquartered in Egypt that focuses on fintech innovation and financial inclusion. Its specialty fund is focused on building a financial technology stack to support and accelerate Egypt's transformation into a digital and financially inclusive economy, and position Egypt as the predominant fintech innovation hub across the Middle East and Africa.
The fund was originally managed by the UAE-headquartered Global Ventures, and it was spun out to become its own standalone entity, due to the size and scale of the mission requiring its own team based in Egypt. The fund has been backed by Banque Misr, National Bank of Egypt, and Banque du Caire, with Banque Misr leading the US$105 million raised for its first fund, while the other two banks were strategic follow-on investors.
Basil Moftah, Founding General Partner at Nclude, told us that Nclude acts as a platform for various fintech companies to come together, and build its own fintech ecosystem. He went on to say that the fund considers investments in startups that can "work with each other, support each other, and collaborate to build a strong multilayered tech stack for the Egyptian fintech ecosystem at large."
Nclude has funded startups across fintech such as Paymob, Khazna, Lucky, and FlapKap, and it also has done investments in proptech, healthtech, foodtech, and agritech. Nclude also offers startups and entrepreneurs tools such as access to capital, advisors, talent and other support, including administrative and technology, to benefit from. One example of operational synergies is OneOrder's use of Paymob's tools to offer supply chain financing to its customers.
Related: 10 Graphs You Need To See To Understand Egypt's Startup Ecosystem
Most of Nclude's investments were made in 2022, with 2023 being a "slow year" due to Egypt's recent economic challenges, which include a burdening debt and rising interest rates that make the cost of financing a lot more expensive. "We all know that technology is the ultimate leveler of society; however, the current scenario is extremely challenging post the Ukraine-Russia war as inflation has touched 35%, doubling food prices, and everything has rocketed," Moftah noted.
But despite such challenges, Moftah remains confident that Egypt still poses numerous advantages with its young digitally savvy population, which provide a huge opportunity for startups focused on the consumers and SME sector. Indeed, when commenting on the current climate, Moftah said, "Well, there's one consistent trait among Egyptian entrepreneurs, and that's their resilience."
For more insights on Egypt's entrepreneurial ecosystem, check out the report, Investing in Egypt's Startup Ecosystem, here.
This article was originally published on Lucidity Insights, a partner of Entrepreneur Middle East in developing special reports on the Middle East and Africa's tech and entrepreneurial ecosystems.
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