MNT-Halan, recognised as Egypt’s first fintech unicorn, is extending its reach to unbanked and underbanked populations by integrating microlending, consumer finance, digital wallets, card services and payments within a single app.
Based in Cairo, the company’s approach centres on using its proprietary API First Core Banking platform to provide accessible financial services to underserved communities. Now the seventh-largest financial institution in Egypt, MNT-Halan holds over 25 per cent of the country’s microfinance market.
The company reports more than 1.8 million active users per quarter and has issued over $4.4billion in loans, growing its loan book to over $750million – surpassing the personal loan portfolios of the majority of Egyptian banks.
In recent months, MNT-Halan has pursued expansion into the Middle East. In March, it acquired Pakistan’s Advans microfinance bank, and in August, it took over Turkey’s largest nonbank microleasing company, Tam Finans. These acquisitions follow a $157.5million fundraising round in July, supported by international investors like IFC and DPI.
To date, the company has raised a total of over $722million, enabling it to expand its footprint and further develop its services. We sat down with Mounir Nakhla, CEO of MNT-Halan, to delve deeper into the company’s rapid growth and plans for expanding financial access across the Middle East and Africa.
What inspired MNT-Halan to build a superapp?
Mounir Nakhla, CEO of MNT-Halan
I’ve had a longstanding interest in providing financial services to people and the owners of small businesses that are financially underserved. I believe it is a great tool to empower and improve their lives. Since 2010, I have established multiple successful ventures to that end, but they were mostly brick and mortar businesses.
After visiting Gojek in Jakarta in 2017, I was determined to establish a tech company and launch similar services in Egypt. Soon afterwards, Ahmed Mohsen and I established Halan, mimicking our Indonesian counterpart. In 2019, we pivoted and aborted the ride-hailing business and doubled down on becoming the region’s leading financial superapp providing frictionless access to financial services, payments, a card, an investment platform as well as an e-commerce platform and a game.
As a result, we dramatically improved our unit economics. This strategic shift wouldn’t have been possible had we not spent 18 months developing our proprietary core banking software. Today, we are emerging to become one of the largest financial institutions in Egypt and Turkey in terms of the number of customers. We have served more than seven million customers and disbursed north of $10billion. We have also launched our activities in Pakistan and the UAE and are exploring other regional and African markets.
How do you balance the needs of such a diverse, underserved user base?
We keep our users at the centre of everything we do and develop products and services that best solve their problems. To do that effectively, we rely on data to guide our decisions. By segmenting and profiling our users, we gain a deep understanding of their behaviours and needs. Our technology continuously evolves based on insights drawn from this data, ensuring that we can address the unique challenges of our diverse and underserved user base. By bundling micro-lending, payments, e-commerce, and consumer finance into one app, we enable users to manage their financial lives more effectively. Our design ensures that we’re not just delivering convenience but also tailored solutions that reflect the specific needs of our diverse user base.
Following your recent expansions into Pakistan and Turkey, how do you assess which markets to enter next?
We look for markets that have large financially underserved populations. In 2024, this is still quite common, giving us many options. In most countries, banks do not bother with small-ticket loans, and credit card penetration is low. When assessing markets, we consider factors such as population size, GDP and growth, household debt-to-GDP ratios, small business loan and credit card penetration, unit economics, competitive landscape, and national tech infrastructure, including credit bureaus and e-KYC systems. Our strategy is to grow through M&A since credit is a local business and licensing takes a long time.
How has your API First Core Banking software transformed the way you deliver financial services, and what’s its biggest advantage over traditional banks?
Neuron, our proprietary API First Core Banking system, has revolutionised how we deliver financial services by providing a scalable, secure, and flexible backbone for all our digital products. Traditional banks rely on legacy systems that can be slow to adapt and costly to maintain, whereas Neuron allows for seamless integration of new services and rapid adjustments based on customer feedback. Its ability to manage millions of customers and multiple currencies, combined with high availability, offers a frictionless experience, driving engagement and financial inclusion across Egypt and now into international markets.
With MNT-Halan’s rapid growth, what strategies are in place to stay ahead in Egypt’s competitive microfinance sector?
There are tens of players and yet we maintain a market share that is north of 25%. Our strategy to keep this leadership position is to maintain a deep connection with our customers, we offer them other services that are important to them and give them a fantastic experience. We have realised that the more services our customers use with us, the less likely they are to churn and therefore contribute to the lifetime value. Our ability to scale quickly through technology, paired with our on-the-ground presence in communities, ensures we reach underserved populations effectively. By fostering partnerships and utilising data-driven decision-making, we ensure sustainable growth and remain a step ahead of the market.
How are you planning to utilise your latest $157.5million fundraise, and how do international investors shape your vision?
This fundraise enabled us to close the acquisitions in Turkey and Pakistan, grow our GCC business and invest more in technology. It is also helping us to scale our operations in different markets. Our international investors have added tremendous value in evaluating our strategy and refining our business model. They often have very interesting insights through their international exposure in similar countries and companies.
What initiatives is MNT-Halan undertaking to drive financial literacy and long-term financial inclusion across the region?
We are deeply committed to increasing financial literacy through both on-the-ground initiatives and digital education campaigns. Our team works directly with underserved communities to teach individuals how to manage finances, use digital wallets, and access loans responsibly. Additionally, through our partnerships with organisations like UN Women and DEG, we actively promote women’s economic empowerment, providing them with the financial tools and education to take control of their own and their families’ financial futures. Our efforts aim not just to provide access but to foster long-term financial independence.
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