MNT-Halan's Expansion into Turkey

MNT-Halan, a leading Egyptian fintech unicorn, is venturing into the Turkish market with the acquisition of Tam Finans. This strategic move will see MNT-Halan expand its microfinance and payments operations into Turkey, further solidifying its position as a major player in the region.

• MNT-Halan raised $157.5 million in funding, which will partially be used to finance the Tam Finans acquisition.
• Tam Finans is a well-established Turkish fintech specializing in microfinance and SME lending.
• The combined entity will hold a loan book of "slightly less than $1 billion," according to MNT-Halan's CEO.
• Actera and the European Bank for Reconstruction and Development (EBRD) will become shareholders in MNT-Halan.

The Rationale Behind the Acquisition

The decision to acquire Tam Finans is driven by MNT-Halan's ambition to expand its footprint and leverage its expertise in the Turkish market.

• Turkey, a country with a substantial GDP and a large population, presents significant growth potential for MNT-Halan.
• MNT-Halan aims to capitalize on its existing product portfolio, including its core banking system, Neuron, backend system, and app development services.
• Tam Finans' extensive network of branches, management expertise, and financial potential will provide a strong foundation for MNT-Halan's expansion in Turkey.

The Opportunities in the Turkish Market

Turkey offers a promising market for fintech companies, particularly those targeting the unbanked population, which represents over 30% of the country's population. This has led to the emergence of numerous fintech startups like Tam Finans, providing innovative financial solutions to underserved segments.

• Tam Finans specializes in "invoice factoring," a form of alternative financing for MSMEs, providing immediate cash flow through the purchase of outstanding invoices.
• MNT-Halan is planning to venture into factoring in Q4 2024, complementing its existing small and micro-business lending business.

MNT-Halan's Growth Strategy

MNT-Halan's expansion into Turkey is part of its broader growth strategy, which also includes its recent foray into Pakistan and other potential expansion plans.

• MNT-Halan has a strong focus on lending, providing financial access to underserved populations.
• The company also offers a range of other products, including consumer finance, prepaid cards, e-wallets, savings, payments, e-commerce, FMCG delivery, and mobile POS payments.
• MNT-Halan's super app, launched in April, consolidates all these services under one platform, providing a comprehensive financial solution for customers.
• The company's growth is fueled by investments from DPI, Lorax Capital Partners, funds managed by Apis Partners LLP, Lunate, GB Corp, and the IFC.

MNT-Halan's Future Prospects

MNT-Halan's acquisition of Tam Finans signifies its commitment to regional growth and its ambition to become a leading fintech player in the Middle East and beyond.

• MNT-Halan's projected revenue for 2024 is between $500-600 million.
• The company's expansion into Turkey is expected to further enhance its growth trajectory and solidify its position as a prominent fintech player in the region.