eFinance Group, a state-owned provider of digital payment solutions, has invested $5 million in Nexta, an Egyptian company that plans to launch its banking app in the coming months.
This news comes after Nexta said in March that it had raised $2 million in a pre-seed round led by an Egyptian early-stage VC firm, Disruptech.
Before getting full permission from the Central Bank of Egypt (CBE) for the agent banking license, it needs to start doing business in the country. Nexta got a provisional license from the CBE in 2021 and will work to meet other conditions and do certain things.
eFinance Group, a state-owned provider of digital payment solutions, has invested $5 million in Nexta, an Egyptian company that plans to launch its banking app in the coming months.
This news comes after Nexta said in March that it had raised $2 million in a pre-seed round led by an Egyptian early-stage VC firm, Disruptech.
Before getting full permission from the Central Bank of Egypt (CBE) for the agent banking license, it needs to start doing business in the country. Nexta got a provisional license from the CBE in 2021 and will work to meet other conditions and do certain things.
It’s important to remember that the Group helped create Nclude, a fund that invests in new fintech companies. This will help the industry’s growth in Egypt both now and in the future.
The Middle East is going through a massive wave of digital change, and Egypt’s financial sector shows a strong desire to change and adapt.
Egypt’s emerging fintech environment has been expanding at an impressive rate recently, with notable growth in the number of firms in the sector, a noticeable boost in venture capital (VC) investments, and increasing worldwide growth.
Egypt is one of the African markets with the highest customer spending. Furthermore, because it is one of the region’s cash-heavy markets, there is a massive opportunity for fintech to drive customer spending online by introducing card services.
Egyptians looking for new alternatives to telco-powered mobile wallets and old bank digital channels could try Nexta and Telda, two fintech companies backed by Sequoia that just announced a $20 million seed round.
As a result of the investment, the fintech banking industry is flourishing and gaining momentum.
This demonstrates how, as a result of the acquisition, the fintech banking industry is flourishing and gaining momentum.
Additionally, as new companies are likely to enter the market, the number of fintech banks in the nation will probably increase in the years to come.
Source: https://www.techinafrica.com/nexta-an-egyptian-startup-receives-5-million-from-efinance-group/