Egyptian digital lending startup Qardy has been acquired by Catalyst Partners Middle East in the country’s first-ever special purpose acquisition company (SPAC) merger, in a deal valued at EGP1.16 billion (US$23.15 million).
Founded in July 2022, Qardy facilitates loans for MSMEs, with founder Abdel Aziz Abdel Nabi saying the startup’s goal was to be the “Amazon of lending”.
“Qardy aims to cut the waiting time to get a loan from nine months to around 18 days. Since the current lending process is manual, it takes so much time, and it mainly focuses on personal connections, making it very tough for MSMEs to go through the process,” he told Disrupt Africa in July 2023.
Since its launch, Qardy has established itself as a trusted partner for MSMEs and financial institutions, and now has over 6,000 corporate clients on its platform. It has executed over EGP550 million (US$12 million) in loan transactions.
Disrupt Africa reported in August of last year the startup had secured a seven-figure US dollar pre-seed round of investment to help it expand, and it has now been acquired by Catalyst Partners Middle East , an affiliate of Cairo-based impact investment advisory firm Catalyst Partners.
The transaction makes Qardy the first fintech startup in Egypt to go public via a SPAC structure. The acquisition is being executed through a full or partial share swap, with new shares in Catalyst issued in exchange for the entirety of Qardy’s equity.
“This deal confirms our shared commitment to innovation in non-banking financial services and empowering SMEs. With this merger, we will continue to operate with our existing team and platform, while gaining access to capital, infrastructure, and long-term strategic backing that will allow us to scale more rapidly,” Qardy said in a statement.
