Egyptian startup investments receive a significant boost with Sawari Ventures securing a $69 million fund
In a move to strengthen investments in Egypt's economy, Sawari Ventures and Ekuity Holding have formed a strategic alliance. This partnership is in line with Misr Insurance Holding Group's role in supporting the vital sector of the economy.
At the helm of Sawari Ventures is Tarek Assaad, the founder and chairman, who leads a team that also includes Ahmed Al-Alfi, Hany Al-Sonbay, and Wael Amin. The Egyptian fund, which has now closed with commitments of $28 million (EGP 440 million), will be majority-owned by Misr Insurance Holding Group, the largest non-bank financial group in Egypt and a strategic partner in the fund.
The new fund aims to create exceptional returns through investing in knowledge-driven companies. It will focus on emerging small and medium-sized enterprises, with the Egyptian fund investing in both seed-stage and growth-stage companies. Ten percent of the fund will be invested in seed-stage companies through Flat6Labs in Egypt and Tunisia. The rest of the fund (90 percent) is earmarked for growth-stage companies, with a media investment range of $2 to 3 million.
The partnership with Ekuity Holding, the Egyptian investment arm of the Kuwait Investment Authority, strengthens Kuwaiti investments in Egypt. This is not the first venture for Sawari Ventures in the region. They also manage a $70 million North Africa-focused fund, which was previously closed with $41 million (EGP 650 million) from the European Investment Bank and other development finance institutions. The total size of the fund is now $69 million (EGP 1.09 billion). The North Africa-focused fund had raised $35 million in its first close in December 2018.
The new fund will only invest in Egyptian startups, providing local companies with dedicated capital, quality expertise, and the value add of investors. The fund will support these companies as they grow and contribute to Egypt's economy, further solidifying the alliance between Egypt and its strategic partners.
