Egypt Unicorn Grabs USD 49 M As African Fintechs Invade Public Debt Markets

Egyptian fintech unicorn MNT-Halan has successfully completed a landmark EGP 2.5 B (approximately USD 49 M) raise from the public debt market with a corporate bond issuance, the largest of its kind in Egypt to date.

The issuance, conducted through its subsidiary Tasaheel Holding Company, was divided into two tranches: EGP 2 B with a 12-month tenor and EGP 500 M with a 36-month tenor. Both tranches received a BBB+ credit rating from the Middle East Rating and Investor Service (MERIS).

Founded in 2018 by Mounir Nakhla (CEO) and Ahmed Mohsen (CTO), MNT-Halan was created to digitally bank the unbanked and substitute cash with electronic solutions. The MNT-Halan digital ecosystem includes small and micro business lending, payments, consumer finance, and e-commerce.

This move signals a broader trend among African fintechs toward leveraging public debt markets to secure non-dilutive capital. Traditionally reliant on venture capital, companies like MNT-Halan are now exploring avenues such as corporate bonds and commercial paper to fund their lending portfolios. This strategy aligns with a growing emphasis on profitability and sustainable growth over sheer valuation metrics.

MNT-Halan’s approach is not isolated. Egypt’s fintech landscape is witnessing similar shifts, with consumer finance platform Valu completing multiple securitised bond issuances as part of a larger EGP 16 B program. Valu’s consistent use of securitisation highlights the viability of packaging and selling future receivables to raise immediate capital.

Furthermore, Valu’s parent company, EFG Hermes Holding, has approved plans to list the fintech unit on the Egyptian Exchange (EGX), signaling a maturation of the fintech sector and providing a pathway for investor exits.

In Nigeria, digital bank FairMoney has also pivoted toward debt financing. Since its Series B equity round in 2021, FairMoney has increasingly relied on commercial paper issuances to fund operations, raising NGN 5.3 B (approximately USD 3.5 M) in April 2025 alone.

However, this shift toward public debt is occurring within evolving regulatory frameworks. Both Egyptian and Nigerian authorities have introduced stricter regulations governing debt issuance by non-bank financial institutions, aiming to enhance market stability and investor protection.

In Egypt, the Financial Regulatory Authority (FRA) has imposed tighter controls on securitisation, requiring greater transparency and stricter conditions on securitised assets. Similarly, Nigeria’s Securities and Exchange Commission (SEC) has mandated higher shareholder equity and investment-grade credit ratings for commercial paper issuance.

Despite these regulatory challenges, the trend indicates a significant evolution in the African fintech funding landscape. Public debt markets offer a more sustainable and less dilutive path to capital for companies with proven business models and a focus on profitability.

As more African fintechs demonstrate financial discipline and navigate the regulatory environment, their increasing engagement with public markets is set to redefine how these companies are funded and valued, moving toward institutional credibility and long-term sustainability.