Information on the Target

Wasla is a pioneering platform aimed at enhancing the e-commerce experience for users in emerging markets. Founded in 2019 by Mahmoud El Said, Serag Meneassy, and Taymour Sabry, Wasla provides a mobile web browser and desktop extension that aggregates deals from over 100 local and regional e-commerce merchants, similar to the US startup Honey. The platform has achieved impressive growth, with 1.5 million app downloads and an 8.5x year-on-year increase in total e-commerce traffic. Wasla's mission is to enable e-commerce, payments, and credit access while ensuring users enjoy a seamless online shopping experience.

With a recent partnership with Egypt Ventures that helped secure Pre-series A funding, Wasla has expanded its services and is now poised for regional growth across Africa, recognized as one of the fastest-growing consumer markets worldwide. The company focuses on optimizing the e-commerce search experience and helping users save money, while also building their credit profiles through flexible financing solutions.

Industry Overview in Egypt

The fintech industry in Egypt is witnessing a transformative wave, driven by technological advancements and a growing demand for digital financial services. As the largest consumer finance platform in Egypt, Contact (formerly Sarwa Capital) is at the forefront of this evolution, providing innovative financial solutions since 2001. The rise of e-commerce has significantly influenced consumers' financial behaviors, necessitating new and improved financial services that cater to a digitally savvy population.

Egypt's e-commerce landscape is rapidly evolving, bolstered by an increase in internet penetration and mobile usage. Consumers are increasingly turning to online shopping, prompting the need for platforms like Wasla that enhance the user experience and facilitate transactions securely. This growth presents substantial opportunities for businesses in the fintech sector to innovate and expand their offerings, particularly in providing credit access and payment solutions.

The competition in Egypt's fintech market is intensifying as established players and new entrants vie for consumer attention. Consumers are becoming more aware of their financial options and expect seamless integration of services, including credit scoring, online payments, and the ability to manage their finances conveniently. The interplay between traditional financial institutions and new fintech companies is creating a dynamic ecosystem that encourages collaboration and investment.

As regulatory frameworks continue to evolve, they offer increased support for fintech ventures, enabling them to operate effectively while ensuring the protection of consumer interests. This conducive environment is likely to facilitate further growth in the sector, making Egypt a burgeoning hub for fintech innovation and investment.

The Rationale Behind the Deal

The partnership between Contact and Wasla is designed to accelerate the rollout of Wasla's innovative products and expand its market presence in emerging economies. With a financial commitment of up to $9 million, Contact aims to empower Wasla to enhance its offerings and drive the adoption of e-commerce solutions among wider audiences.

This strategic investment signifies Contact's commitment to facilitating technological advancements in Egypt's financing ecosystem, enabling Wasla to optimize users' online shopping experiences and improve access to financial services like Buy Now Pay Later and secure online payments.

Information About the Investor

Contact Financial Services is Egypt’s largest consumer finance platform, renowned for revolutionizing the way financial products are accessed by consumers. Established in 2001, the company has been a trailblazer in introducing advanced credit scoring and collection mechanisms within the country, building a reputation for quality and reliability in financial services.

With a focus on expanding its footprint in the fintech landscape, Contact has consistently evolved to meet the needs of the modern consumer. Its efforts to develop tech-first ventures will further enhance the financing ecosystem in Egypt, enabling better service delivery and empowering businesses through innovative financial solutions.

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This strategic partnership between Contact and Wasla stands out as a promising investment opportunity within the burgeoning fintech domain in Egypt. Given Wasla's rapid growth trajectory and its innovative approach to improving the e-commerce experience, the investment can potentially yield substantial returns as more consumers shift towards online shopping.

Additionally, Contact's established market position and expertise in consumer finance are likely to provide Wasla with valuable support as it expands its offerings. This collaboration not only enhances Wasla's capabilities but also aligns with the broader trends in consumer behavior focusing on digital solutions.

The combination of Contact's advanced credit services and Wasla's innovative platform is expected to create a comprehensive ecosystem that caters to a growing demographic seeking efficient financial solutions. This investment reaffirms the significance of strategic partnerships in driving growth within Egypt's increasingly competitive fintech market.

Overall, this collaboration represents a strategic move for both companies, positioning them well to capitalize on emerging opportunities in the regional e-commerce landscape and potentially making it a favorable investment for stakeholders involved.

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