Egypt-based VC fund DisrupTech Ventures has received a $5 million investment from Proparco to support development in Egypt’s fintech sector and help expand access to financial services in the country.
Founded in 2021, DisrupTech is an early-stage VC fund that aims to provide Seed capital to up to 28 startups with a prime focus on fintech. The fund has raised $36 million from several investors, including Development Finance Institutions, Funds-of-funds and family offices.
Proparco is a subsidiary of the French Development Agency which has invested over $134 million in early-stage companies and venture capital funds in Africa since 2020.
For Egypt’s financial inclusion and digital transformation, it is vital to increase access to financial services, from making deposits to paying bills. Even if it has increased significantly over the past few years, the amount of venture capital that is currently available in Egypt is only one-fourth that of the developing market average.
DisrupTech will offer guidance and mentoring to the businesses it supports in addition to funding.
“Egypt is full of bright, talented founders but too often, they cannot secure the capital they need to expand their businesses, we are always excited about supporting entrepreneurs, increasing access to financial services and contributing to Egypt’s growth,” said Mohamed Okasha, Managing Partner from DisrupTech Ventures.
“We are pleased to partner with DisrupTech Ventures, which has already become one of the leading early-stage investors in Egypt. Thanks to its company-building track record and domain-specific expertise, DisrupTech is bringing much-needed support to young companies in the region. This is in line with Proparco’s strategy to maximise impacts and to finance innovation, by fostering the emergence of a dynamic venture capital industry to back African entrepreneurs” said Françoise Lombard, Chief Executive Officer at Proparco.
DisrupTech was established to support early-stage Fintech and Fintech-enabled digital services startups with a focus on Egypt. The team adopts a hands-on approach from the very beginning, partnering with talented entrepreneurs to transform their vision into reality. One of its main aspirations is to be a catalyst in transforming the larger financial services ecosystem in Egypt.
Launched 24 months ago, DisrupTech has invested 40% of its fund size in technology start-ups to date. DisrupTech was founded by a diverse team of financial technology veterans and entrepreneurial investment professionals with experience in Egypt and internationally.
Proparco’s investment in DisrupTech is part of its Venture Capital programme, through which it has invested over €120m in African early-stage companies and venture capital funds since 2020.
