MNT-Halan, Egypt’s largest non-bank financial institution and fintech startup, has purchased Tam Finans, expanding its operations into Turkey.
The microfinance and payments business has raised $157.5 million in capital, which will be used in part to fund the acquisition of Tam Finans according to the CEO of MNT-Halan, Mounir Nakhla in a statement on Friday.
The financing round attracted investors, including the International Finance Corporation (IFC), which pledged $40 million.
Other participants were Development Partners International, and Lorax Capital Partners, funds administered by Apis Partners LLP, Lunate, and GB Corp.
Tam Finans, a commercial finance company with a loan book of more than $300 million (TL 99 billion), is a factoring company that lends to micro-enterprises and small- and medium-sized businesses (SMEs).
Tam Finans has a 40% market share in Turkey, with 39 branches in 26 cities, and the acquisition will result in an organisation with a loan portfolio of about $1 billion.
MNT-Halan, founded in 2018, has swiftly expanded its financial ecosystem, now serving over 7 million Egyptian consumers.
It provides a wide range of services, including commercial and consumer loans, prepaid cards, e-wallets, and e-commerce solutions.
We intend to leverage Tam Finans’ size, distribution networks, management expertise and financial potential to have a strong foothold and significant presence in Turkey,” Nakhla explained.
Newsng understands that there are chances to get brand-new clients in addition to upselling current ones. More than 30% of Turkish citizens do not have a bank account, which has presented a chance for numerous fintech aspirants.
Hakan Karamanlı, Tam Finans’ CEO, said, “We are delighted to join the MNT-Halan family. Their core belief that financial access enables people to fulfil their dreams mirrors the same ethos we have built our company on.
“MNT-Halan’s scalable technology will now allow us to grow faster and take our mission to more businesses and people as we capture cross-selling opportunities through an expanded product and services offering.”
We earlier reported that Amazon Italy and the Italian payments company Nexi have partnered to enable BANCOMAT Pay payments for users of the online store.
