Egyptian fintech company MNT-Halan is making big moves in the industry. They have recently secured $157.5 million in funding and have used part of this money to acquire the Turkish fintech company Tam Finans. This acquisition will allow MNT-Halan to expand into the Turkish market.
Tam Finans is known for providing financing to micro-enterprises and SMEs in Turkey. They currently operate 39 branches in 26 cities and hold a 40% market share in the country. The CEO of MNT-Halan, Mounir Nakhla, mentioned that the combined entity resulting from this deal will have a loan book of nearly $1 billion.
The financial terms of the acquisition were not disclosed, but it is known that Actera, a private equity firm in Turkey, and the European Bank for Reconstruction and Development will become shareholders in MNT-Halan. This latest funding round comes after MNT-Halan raised $400 million in equity and debt 19 months ago, valuing the company at $1 billion.
Nakhla, the co-founder of MNT-Halan, expressed his excitement about entering the Turkish market. He sees a huge opportunity to leverage the products and services they have developed in Egypt, such as their core banking system Neuron, backend system, and app development, in Turkey. With over 30% of Turkey’s population being unbanked, there is a significant opportunity for fintech companies like MNT-Halan to provide financial services to a new customer base.
MNT-Halan has already disbursed over $4.5 billion in loans and served more than 7 million customers in Egypt. Their primary business is lending, but they also offer a range of other products such as consumer finance, prepaid cards, e-wallets, savings, payments, and e-commerce. They recently launched a super app to consolidate all these services in one place and have seen success with their prepaid card product.
In addition to expanding into Turkey, MNT-Halan has also ventured into Pakistan by acquiring a microfinance bank. They are looking into other growth opportunities as well. The recent investment from existing investors will support these expansion plans and help MNT-Halan achieve their revenue targets for 2024. With this latest round of funding, MNT-Halan has raised over $630 million in equity and debt.
Overall, MNT-Halan’s acquisition of Tam Finans marks a significant milestone in their growth journey, allowing them to enter new markets and serve more customers with their innovative financial products and services.
