The French development finance organization Proparco has invested $5 million into an early-stage venture capital fund that DisrupTech Ventures runs. This is to help Egypt’s fintech sector grow and make it easier for people in the country to get financial services.
DisrupTech Ventures wants to give seed funding to up to 28 startups, with a main focus on those that offer services related to financial technology.
The fund received $36 million from several donors, such as family offices, development finance institutions, and funds-of-funds. DisrupTech Ventures will also help the businesses it backs by giving them advice and helping them grow.
Egypt needs to move quickly toward digitalization and financial inclusion because tech companies often have trouble getting the money they need to bring their ideas to market.
Egypt has only a quarter of the usual amount of venture capital for an emerging market, but it has grown a lot in the past few years. DisrupTech Ventures was created to help Egypt-based finance and digital services startups in their early stages.
The team works with bright entrepreneurs to make their ideas come true and hopes to be a driving force in changing the financial services ecosystem in Egypt.
Francoise Lombard, the CEO of Proparco, said that the relationship with DisrupTech Ventures aligns with Proparco’s strategy to maximize impacts and finance innovation by encouraging the growth of a dynamic venture capital industry to help African entrepreneurs.
Proparco has put more than €120 million into African early-stage companies and venture capital funds through its Venture Capital program since 2020.