Disruptech backs Egypt’s Banknbox to tap fintech potential
Venture capital firm Disruptech, specializing in Egypt's fintech sector, has invested an undisclosed sum in Banknbox, a leading provider of banking solutions, electronic payments, smart transportation tech, and digital government payment solutions.
The partnership aims to introduce innovative services and integrated solutions for banks and financial technology companies in both local and regional markets through Disruptech's regional headquarters in Egypt.
Meanwhile, the investment is anticipated to facilitate Banknbox's expansion into new markets. Also, Disruptech aims to enhance its current and future investments by leveraging Banknbox's 15 years of experience in fintech solutions. Notably, this marks its initial foray into a platform focusing on payment processing and digital banking technology.
The fintech sector in the Middle East, North Africa, and Pakistan (MENAP) has experienced robust growth in recent years, with annual investor backing increasing by approximately 36 percent from 2017 to 2022. Despite a sharp drop in valuations and changing market dynamics in the global tech sector in 2022, many local fintechs in the MENAP region are actively expanding their presence both within the region and beyond. However, there is now a renewed emphasis on profitability, marking a new imperative for startups. The region's positive macroeconomic outlook and the consistently strong performance of its financial services industry provide favorable conditions for the continued growth of the fintech sector. McKinsey estimates that MENAP fintech revenue could nearly triple, rising from $1.5 billion in 2022 to a range between $3.5 billion and $4.5 billion by 2025. This substantial increase would elevate fintech's share of financial services revenue from less than 1% to approximately 2.0 to 2.5%.