View profile

The rise of Egypt’s first billion-dollar tech company

The rise of Egypt’s first billion-dollar tech company
By get.Africa Weekly • Issue #33 • View online
ṣabā il kẖayr,
That’s “good morning” in Arabic
Apple has become the first company to reach a $2 trillion market cap; investors are pouring money into the house that Steve Jobs built betting that it would serve as a refuge from the pandemic-induced recession. 
In Egypt, an 11 year-old fintech company is experiencing a similar rise in investor confidence. So much so that, in a country that already knows a thing or two about elegant mythical creatures, a unicorn was recently born. Or was it?
A unicorn in the land of the sphinx
Fawry has made history by becoming the first Egyptian company to reach a market cap of $ 1 billion.
It wasn’t entirely expected, startups like the Y Combinator-backed Instabug were tipped to reach the valuation milestone first, although that was before the pandemic. 
Fawry is Egypt’s leading electronic payment platform. It has a network of over 105,000 service points across the country, this includes ATMs, mobile wallets, post offices and kiosks.
Fawry went public on the Egyptian Exchange in August 2019, since then its stock price has increased by over 300%.
In making the announcement, the company’s former managing director Mohamed Okasha called Fawry a unicorn. Although, as a publicly-traded entity, that claim is up for debate.
What is less disputable, however, is the significance of the valuation. 
Fawry isn’t the first African tech company to reach a $1 billion market cap, far from, but it still has some continental firsts.
  • It’s the first outside of Sub-Saharan Africa, which further strengthens Egypt’s position as a regional leader.
  • It’s the first to do so on a local stock exchange which is a model case of a viable alternative to international listings.
  • It also achieved this after IPO, meaning it has grown into the market valuation.   
All indicators that will no doubt encourage investors and the ecosystem as a whole. 

Fawry reaches a market cap of $1 billion
The difficulty of doing business in Lagos is driving out tech startups
Getting a Nigerian national ID card takes up to 4 years and going digital will not solve the problem
Does the eSIM spell the beginning of the end for SIM card revenue?
Tech exits and the likelihood of an international listing
+ Reads
+ Paystack gets tongue-lashed after declining a user’s request to use its platform for a sex party.
+ Uber launches deliver anything service “Connect” in Egypt.
+ Data breach exposes personal information of 24 million South Africans.
+ Should African entrepreneurs target the few affluent or the many low-income consumers?
+ IHS Holdings is planning the biggest American IPO for an African firm.
Watch + Listen
Jumia’s losses reduce for the second quarter running and Lagos makes an about-face on ride-hailing regulations
Why facial recognition technology still misidentifies black people
Raising capital during COVID-19
From idea to exit - a startup fundraising journey
Overheard on Twitter
arbeitgeber ist beschissen
Here is a collation of the tweets/stories of devs that have been mistreated by @favouroncode aka WeJapa, now aka TechPuppi, also aka Mr Spaghetti.

Get popcorn guys it's a sweet ride in no chronological order.

Updates every 5 mins.
Apps + Tools
+ To make whiteboard animation videos like this for educational or marketing purposes, please send us an email.
+ Want to produce, promote or distribute your podcast? Get in touch with Visual Audio Times.
+ Main One is looking for a Lagos-based Cloud Operations Specialist among other roles.
+ Konga is looking for a Lagos-based Head of Products, Digital Marketing Lead and more. Send a mail, if you’re interested.
To support get.Africa, follow us on Twitter, share this issue, send us an email.
Did you enjoy this issue?
get.Africa Weekly

African tech in a language you'll understand. The most important stories contextualized and delivered to your inbox every Monday. Curated by Chiagoziem O.

If you don't want these updates anymore, please unsubscribe here.
If you were forwarded this newsletter and you like it, you can subscribe here.
Powered by Revue
get.Africa Media, Nigeria