Sawari Ventures a renowned investment firm launches a $150 million fund giving Egyptian startup a significant boost. The CEO and co-founder, Hani Al Sanbati, described the company’s emphasis on a variety of industries, including deep tech, green technology, healthcare, education, and fintech, with an eye toward these fields experiencing rapid growth in Egypt.
Sawari Ventures Launches $150 Million Fund Giving Egyptian Entrepreneurs a Significant Boost
Al Sanbati expressed optimism about the situation of the economy in a formal statement, saying that the current environment is favorable for further investments in technological businesses. He underlined that early difficulties encountered by startups are not anticipated to impede their overall trajectory of growth.
According to projections, Sawari Ventures-backed Egyptian firms may draw significant investments over the next five years, with amounts ranging from $350 million to $500 million. Al Sanbati highlighted Sawari’s track record of investing in about 500 businesses since its founding in the Arab world, which highlights the company’s larger aim for Egypt to become a crucial hub for investment in both Africa and the wider region.
In doing so, he demonstrated Sawari Ventures’ dedication to supporting innovation and entrepreneurship in the area by explaining the company’s operational framework, which is intended to stimulate investments and position businesses for future funding opportunities.
More than 35% of Sawari Ventures’ Investment Portfolio is made up of Sawari Ventures
The fintech industry accounts for over 35% of Sawari Ventures’ investment portfolio, intending to modernize the Egyptian economy and alter the direction of financial inclusiveness.
Since its founding in Egypt in 2010, Sawari Ventures has grown to be one of the nation’s leading venture capital firms, having backed over 30 businesses, including Swvl, MoneyFellows, Instabug, Si-Ware, and Elves.
According to data from Africa: The Big Deal, funding for African startups fell significantly in January 2024 compared to the same month the previous year, falling by 84.8% year over year from $545.1 million to $83 million.
But if one big acquisition is taken out of the picture in 2023, the decline is less dramatic at 16.2%, suggesting that despite the global financing slowdown, the African tech ecosystem is still growing at a fairly steady rate.
Agritech, Cleantech, and Healthtech are Currently the Three Major Industries Drawing the Greatest Investment
In January 2024, agritech ($26.3 million), cleantech ($18.1 million), and health tech ($13.5 million) were the three major industries drawing the greatest investment. Fintech and other industries saw a notable decrease in funding, which was consistent with the global trend of investors favoring well-established firms with track records in difficult economic times.
Interestingly, Bosta, FriendlyM, and Roboost three of the four logistics businesses that raised money in January all originated in North Africa, namely in Egypt. The success of Egyptian mobility company Swvl, which turned a profit in 2023 following years of losses, is consistent with this pattern and suggests that investors may become more interested in Egypt’s logistics industry in the upcoming year.
Investors Reaffirmed their Commitment to the African Tech Ecosystem Despite the Investment Slowdown
In January 2024, investors both new and old reaffirmed their commitment to the African tech ecosystem despite the investment slowdown. With an emphasis on francophone Africa, the European Investment Bank (EIB) invested $30 million in Seedstars, with an additional $10.5 million from the African Development Bank (AfDB).
Prominent individuals such as Iyin Aboyeji and Mia von Koschitzky-Kimani established Accelerate Africa, an early-stage startup accelerator based in Nigeria. Egypt recently welcomed the launch of T-vencubator, a hybrid venture capital firm, and incubator to invest in promising Egyptian entrepreneurs. This innovative approach has the potential to be very beneficial for early-stage startups operating in Egypt.
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