EGYPT Law and Practice Contributed by: Arig Ali and Lana Abd El-Rassoul, Zaki Hashem, Attorneys at Law
Ventures, Khwarizmi Ventures, and SANAD Fund for MSME. • Also in February, UAE-based tech giant Dubi - zzle Group successfully acquired Hatla2ee, one of Egypt’s leading online car marketplac - es for an undisclosed amount. • In July 2024, a substantial funding round for fintech leader MNT-Halan successfully raised around USD157 million from International Finance Corporation (IFC), DPI (Development Partners International), Lorax Capital Part - ners, and funds managed by Apis Partners LLP, Lunate and GB Corp. • In April 2024, Cairo-based fintech startup Bokra raised USD4.6 million in a pre-seed funding round led by DisrupTech Ventures and SS Capital, among other investors. • In January 2024, Health-tech startup Yodawy secured USD10 million from Ezdehar’s Mid- Cap Fund II. • In her speech at the Egypt’s Venture Invest - ment Summit 2025, Minister of Planning, Eco - nomic Development and International Coop - eration H.E. Dr Rania El Mashat stated that startups in Egypt have raised approximately USD2 billion in VC funding over the last five years. She also indicated that Egypt ranks third in Africa and the Middle East in terms of VC funding and deal execution. 1.2 Key Trends Egypt has seen relatively larger transaction sizes concentrated among more mature companies in recent years. As stated in 1.1 VC Market , a key structural trend is the increasing use of offshore SPVs to facilitate 100% ownership of operat - ing companies in Egypt – motivated by investor familiarity with international legal standards and ease of repatriation. This has prompted govern - ment initiatives such as the Ministerial Group for Entrepreneurship, established by Decree No 2878 of 2024 issued by the Prime Minister. The
group is led by H.E. Dr Rania El Mashat, Min - ister of Planning, Economic Development and International Cooperation, to encourage direct investment structures within Egypt. Investors now prefer later-stage companies with proven financial health and clear paths to profitability. In general, key changes in investment terms include: • reduced valuations, leading to more “down- rounds” ; • increased investor protections, such as liqui - dation preference and anti-dilution rights; and • more frequent use of milestone-based financ - ing structures. In addition to the above, due diligence exercises have become increasingly meticulous, in particu - lar in the fintech sector. Given the detailed laws and regulations surrounding technology require - ments for fintech, investors are now conducting more comprehensive due diligence, including technical due diligence to ensure compliance and mitigate risks. This shift is also driven by recent challenging transactions, prompting a move away from high-level due diligence to more thorough assessments. 1.3 Key Industries Fintech remains Egypt’s leading sector for VC activity, drawing substantial funding due to its high growth potential. Health-tech, logistics, edtech and agriculture technology have also attracted increased investor interest. Biotech, in particular, is gaining traction as a strategic sec - tor with high acquisition potential once products are market ready. In the current macroeconom - ic environment, startups that generate foreign currency revenues have become particularly appealing.
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