Egypt’s Qardy Acquired in First-Ever SPAC Merger for Local Fintech

STARTUP VENTURE CAPITALMay 30, 2025 at 9:06 AM UTC

TLDR

Qardy has been acquired by Catalyst Partners Middle East in the country’s first special purpose acquisition company (SPAC) merger
The platform has served over 6,000 corporate clients and facilitated more than EGP 550 million (USD 12 million) in loan transactions
The SPAC merger, executed via a share swap, makes Qardy the first Egyptian fintech to go public using this structure

Egyptian digital lending platform Qardy has been acquired by Catalyst Partners Middle East in the country’s first special purpose acquisition company (SPAC) merger, in a deal valued at EGP 1.16 billion ($23.15 million).

Founded in July 2022, Qardy streamlines loan access for micro, small, and medium enterprises (MSMEs), reducing application timelines from months to weeks. The platform has served over 6,000 corporate clients and facilitated more than EGP 550 million (USD 12 million) in loan transactions. In 2023, Qardy raised a seven-figure USD pre-seed round to accelerate growth.

The SPAC merger, executed via a share swap, makes Qardy the first Egyptian fintech to go public using this structure. Catalyst Partners Middle East, affiliated with Cairo-based Catalyst Partners, will issue new shares in exchange for Qardy’s equity.

Following the merger, Qardy will continue to operate with its current team and platform. The company stated that the deal provides access to new capital, infrastructure, and strategic support, enabling it to scale its reach and impact in Egypt’s non-banking financial services sector.

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Key Takeaways

Qardy’s acquisition through a SPAC structure is a notable first for Egypt’s fintech ecosystem, signaling an alternative pathway for startup exits amid a funding environment where liquidity options remain limited. SPACs—blank-check firms created to acquire existing companies and take them public—have been more commonly used in the US but are now emerging in African markets as new tools for capital access. The deal also highlights investor appetite for financial infrastructure targeting MSMEs, a segment often underserved by traditional banking channels. Qardy’s platform simplifies credit assessments and accelerates disbursements, addressing major pain points in Egypt’s lending market. As regulatory frameworks evolve and fintech adoption grows, this transaction could encourage more founders and investors to explore SPACs as a viable route for scaling and exit. It also reflects growing alignment between impact-driven investors and fintech startups focused on inclusion and economic resilience for small businesses.

Startups

SPAC

Qardy

Egypt

Fintech

Acquisition

Finance