In many ways, it is no surprise Egyptian transport start-up Halan shifted from offering tuk-tuks and motorcycle rides to providing a full range of financial services. The rise of the “super app” is a global trend and many companies are using a large base of users to expand into other verticals.
When chief executive Mounir Nakhla co-founded Halan in November 2017, he had already started two microfinance companies, Mashroey in 2009 and Tasaheel in 2015.
Ride-hailing gives you a huge base of frequent users, but the unit economics don’t make sense
MNT-Halan CEO Mounir Nakhla
He then laid the groundwork for what became MNT-Halan in June, combining ride-hailing with lending, a buy-now-pay-later (BNPL) service, e-commerce, payments and logistics. In August, the company integrated its core banking software Neuron and in September announced it had secured a whopping $120 million from investors.
MNT-Halan is now riding Egypt’s FinTech wave, propelled by improved regulations, access to funding and tremendous opportunity to serve a largely unbanked population. The Arab world's third-largest economy is also its most populous country.
“In less than three months, MNT-Halan has reached a run rate of 100m Egyptian pounds ($6.37m) in monthly issuances of BNPL and consumer finance,” Mr Nakhla tells The National. “This is crazy growth.”
Egypt is well positioned to become a leading global FinTech hub in the Middle East and North Africa region, according to a June report from Fitch Solutions. The trend is driven by a supportive environment created by the government and a shift to cashless payments precipitated by the Covid-19 pandemic, the report said.
In 2020, the Central Bank of Egypt allocated 1 billion pounds for a FinTech Innovation Fund. And earlier this month, the central bank released regulations for its instant payment network (IPN), which would allow people to make electronic payments between bank accounts using their mobile phones.
Noha Shaker, founder of the Egyptian FinTech Association, says the non-profit group has worked with both the central bank and the Egyptian Financial Regulatory Authority to develop new laws governing the banking and non-banking sectors over the past few years.
“With the support of regulators on the ground, now is the right time to build a FinTech start-up in Egypt,” Ms Shaker says.
MNT-Halan has been granted micro, consumer and nano finance licences from the financial regulatory authority, as well as an electronic wallet licence from the central bank.
“The Central Bank of Egypt wants to reduce cash from circulation and they are coming out with one regulation after the other to promote digital transactions,” says Mr Nakhla. “We are capitalising on this macro trend and the low-hanging fruit that most of the economy is based on cash.”
World Bank data shows that 67 per cent of Egyptians did not have a bank account in 2018. MNT-Halan estimates that more than 70 per cent of the population is “financially underserved”.
However, Ms Shaker goes further to define financial inclusion as access to finance, not just a bank account.
“You’re looking at 100 million Egyptians with a financial inclusion rate of 10 to 12 per cent at best,” she says.
Halan started off as a ride-hailing and delivery business, using motorcycles and tuk-tuks to transport passengers and goods across Egypt. In late 2019, Mr Nakhla and co-founder and chief technology officer Ahmed Mohsen decided the app would take more of a FinTech route.
“Ride-hailing gives you a huge base of frequent users, but the unit economics don’t make sense,” says Mr Nakhla.
The company put a team of 30 to 40 developers to work for about 18 months to develop Neuron, its proprietary payment processing and lending software, which uses machine learning and artificial intelligence to predict consumer behaviour.
“It became the backbone of our lending and payments businesses and it’s the only software that exists in Africa and the Middle East that has these capabilities,” he says.
In June, Halan entered a share swap agreement with MNT, the holding company of microlending businesses Mashroey and Tasaheel. The agreement came on the heels of MNT’s acquisition of 100 per cent of the shares of Raseedy, the first independent digital wallet licensed by Egypt’s central bank.
On the app, consumers can now buy home appliances, electronics, furniture and light vehicles in instalments through the e-commerce platform. They can apply for loans ranging from 3,000 pounds to 200,000 pounds, as well as pay their mobile and utility bills.
“We’re launching multiple products, to have multiple touchpoints, to keep these people within our ecosystem,” Mr Nakhla says.
The company is eyeing growth over the next few years from 1 million active users to 10 million, as well as increasing its stock-keeping units (SKUs) to the tens of thousands, and boosting its loan book to billions of dollars, up from the current hundreds of millions of dollars.
Mr Nakhla declined to disclose the total amount raised by both Halan and MNT-Halan as a new entity. However, in December 2020 Forbes Middle East named Halan as the 10th most-funded start-up in the Middle East, with $23.5m.
Investors in Halan’s seed, Series A and Series B rounds include Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, the UAE’s Wamda Capital and Uber’s founding chief technology officer Oscar Salazar.
“MNT-Halan is uniquely positioned to provide financial solutions, mobility and e-commerce services to the widely underserved masses in Egypt,” says Algebra Ventures managing partner Karim Hussein. “This exceptional team and their unique products are clearly Egypt’s next unicorn in the FinTech sector.”
The $120m announced in September was provided by private equity firms Apis Partners, Development Partners International and Lorax Capital Partners, as well as venture capital firms Venture Partners, Endeavour Catalyst and DisrupTech.
It is by far the largest financing round in the Mena region. Last year, Egypt-based start-ups raised a record $190m in funding and accounted for 22 per cent of deals in the Mena region, data platform Magnitt said in its 2020 Egypt Venture Investment Report.
There are several competitors in Egypt’s FinTech space, but Ms Shaker says “the market is huge”.
BNPL provider Shahry raised $650,000 in pre-seed funding in May 2020. Digital banking start-up Telda, founded in April this year, raised $5m in the region's largest pre-seed led by Sequoia Capital.
E-payment solutions company Fawry became Egypt’s first unicorn when it reached a market capitalisation of $1bn in August 2020. The company reported a net profit of 113.3m pounds in the first half of 2021, an increase of about 60 per cent year-on-year.
“The opportunities for investments are unprecedented. The return you can make in Egypt competes with any mature market and also competes heavily against the emerging markets,” Ms Shaker says.
In the first half of 2022, MNT-Halan is looking to expand to other countries in Africa with large, unbanked populations, and perhaps “one or two countries in South Asia”, Mr Nakhla says.
When asked about the possibility of an initial public offering, Mr Nakhla chose his words carefully.
“I don’t want to make any commitments. However, our group of shareholders is considering possible future plans of listing in the next few years.”
Company profile
Company: MNT-Halan
Date started: 2021
Founders: Mounir Nakhla and Ahmed Mohsen
Based: Cairo, Egypt
Sector: FinTech
Size: ~3,000 employees
Investment: $120m+ (~$23.5m for Halan previously)
Investors: Apis Partners, Development Partners International, DisrupTech, Endeavour Catalyst, Lorax Capital Partners, Venture Partners
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Five personal finance podcasts from The National
To help you get started, tune into these Pocketful of Dirham episodes
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Balance is essential to happiness, health and wealth
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What is a portfolio stress test?
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What are NFTs and why are auction houses interested?
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How gamers are getting rich by earning cryptocurrencies
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Should you buy or rent a home in the UAE?
UAE currency: the story behind the money in your pockets
The specs
Engine: 2.9-litre, V6 twin-turbo
Transmission: seven-speed PDK dual clutch automatic
Power: 375bhp
Torque: 520Nm
Price: Dh332,800
On sale: now
Blonde
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Top goalscorers in Europe
34 goals - Robert Lewandowski (68 points)
34 - Ciro Immobile (68)
31 - Cristiano Ronaldo (62)
28 - Timo Werner (56)
25 - Lionel Messi (50)
*29 - Erling Haaland (50)
23 - Romelu Lukaku (46)
23 - Jamie Vardy (46)
*NOTE: Haaland's goals for Salzburg count for 1.5 points per goal. Goals for Dortmund count for two points per goal.
Ultra processed foods
- Carbonated drinks, sweet or savoury packaged snacks, confectionery, mass-produced packaged breads and buns
- margarines and spreads; cookies, biscuits, pastries, cakes, and cake mixes, breakfast cereals, cereal and energy bars;
- energy drinks, milk drinks, fruit yoghurts and fruit drinks, cocoa drinks, meat and chicken extracts and instant sauces
- infant formulas and follow-on milks, health and slimming products such as powdered or fortified meal and dish substitutes,
- many ready-to-heat products including pre-prepared pies and pasta and pizza dishes, poultry and fish nuggets and sticks, sausages, burgers, hot dogs, and other reconstituted meat products, powdered and packaged instant soups, noodles and desserts.
Killing of Qassem Suleimani
Scoreline
Saudi Arabia 1-0 Japan
Saudi Arabia Al Muwallad 63’
New process leads to panic among jobseekers
As a UAE-based travel agent who processes tourist visas from the Philippines, Jennifer Pacia Gado is fielding a lot of calls from concerned travellers just now. And they are all asking the same question.
“My clients are mostly Filipinos, and they [all want to know] about good conduct certificates,” says the 34-year-old Filipina, who has lived in the UAE for five years.
Ms Gado contacted the Philippines Embassy to get more information on the certificate so she can share it with her clients. She says many are worried about the process and associated costs – which could be as high as Dh500 to obtain and attest a good conduct certificate from the Philippines for jobseekers already living in the UAE.
“They are worried about this because when they arrive here without the NBI [National Bureau of Investigation] clearance, it is a hassle because it takes time,” she says.
“They need to go first to the embassy to apply for the application of the NBI clearance. After that they have go to the police station [in the UAE] for the fingerprints. And then they will apply for the special power of attorney so that someone can finish the process in the Philippines. So it is a long process and more expensive if you are doing it from here.”
Fifa Club World Cup quarter-final
Esperance de Tunis 0
Al Ain 3 (Ahmed 02’, El Shahat 17’, Al Ahbabi 60’)
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
KILLING OF QASSEM SULEIMANI
Evacuations to France hit by controversy
- Over 500 Gazans have been evacuated to France since November 2023
- Evacuations were paused after a student already in France posted anti-Semitic content and was subsequently expelled to Qatar
- The Foreign Ministry launched a review to determine how authorities failed to detect the posts before her entry
- Artists and researchers fall under a programme called Pause that began in 2017
- It has benefited more than 700 people from 44 countries, including Syria, Turkey, Iran, and Sudan
- Since the start of the Gaza war, it has also included 45 Gazan beneficiaries
- Unlike students, they are allowed to bring their families to France
The specs
Price, base / as tested Dh1,100,000 (est)
Engine 5.2-litre V10
Gearbox seven-speed dual clutch
Power 630bhp @ 8,000rpm
Torque 600Nm @ 6,500rpm
Fuel economy, combined 15.7L / 100km (est)
Zayed Sustainability Prize
'Laal Kaptaan'
Director: Navdeep Singh
Stars: Saif Ali Khan, Manav Vij, Deepak Dobriyal, Zoya Hussain
Rating: 2/5
Mohammed bin Zayed Majlis
EPL's youngest
- Ethan Nwaneri (Arsenal)
15 years, 181 days old
- Max Dowman (Arsenal)
15 years, 235 days old
- Jeremy Monga (Leicester)
15 years, 271 days old
- Harvey Elliott (Fulham)
16 years, 30 days old
- Matthew Briggs (Fulham)
16 years, 68 days old
UAE currency: the story behind the money in your pockets
Company%20profile
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Small Victories: The True Story of Faith No More by Adrian Harte
Jawbone Press
Henrik Stenson's finishes at Abu Dhabi HSBC Championship:
2006 - 2
2007 - 8
2008 - 2
2009 - MC
2010 - 21
2011 - 42
2012 - MC
2013 - 23
2014 - MC
2015 - MC
2016 - 3
2017 - 8
Killing of Qassem Suleimani
THE%20SPECS
%3Cp%3EEngine%3A%204.4-litre%20twin-turbo%20V8%20hybrid%0D%3Cbr%3EPower%3A%20653hp%20at%205%2C400rpm%0D%3Cbr%3ETorque%3A%20800Nm%20at%201%2C600-5%2C000rpm%0D%3Cbr%3ETransmission%3A%208-speed%20auto%0D%3Cbr%3E0-100kph%20in%204.3sec%0D%3Cbr%3ETop%20speed%20250kph%0D%3Cbr%3EFuel%20consumption%3A%20NA%0D%3Cbr%3EOn%20sale%3A%20Q2%202023%0D%3Cbr%3EPrice%3A%20From%20Dh750%2C000%0D%3Cbr%3E%3C%2Fp%3E%0A
Killing of Qassem Suleimani
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Pathaan
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Siddharth%20Anand%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Shah%20Rukh%20Khan%2C%20Deepika%20Padukone%2C%20John%20Abraham%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
Sholto Byrnes on Myanmar politics
FIXTURES
Saturday
5.30pm: Shabab Al Ahli v Al Wahda
5.30pm: Khorfakkan v Baniyas
8.15pm: Hatta v Ajman
8.15pm: Sharjah v Al Ain
Sunday
5.30pm: Kalba v Al Jazira
5.30pm: Fujairah v Al Dhafra
8.15pm: Al Nasr v Al Wasl
The years Ramadan fell in May
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Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
Read more about the coronavirus
The specs: 2018 Renault Koleos
Price, base: From Dh77,900
Engine: 2.5L, in-line four-cylinder
Transmission: Continuously variable transmission
Power: 170hp @ 6,000rpm
Torque: 233Nm @ 4,000rpm
Fuel economy, combined: 8.3L / 100km
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More coverage from the Future Forum
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
Company%20profile
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Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
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Mohammed bin Zayed Majlis
Panipat
Director Ashutosh Gowariker
Produced Ashutosh Gowariker, Rohit Shelatkar, Reliance Entertainment
Cast Arjun Kapoor, Sanjay Dutt, Kriti Sanon, Mohnish Behl, Padmini Kolhapure, Zeenat Aman
Rating 3 /5 stars
More on Quran memorisation:
The essentials
What: Emirates Airline Festival of Literature
When: Friday until March 9
Where: All main sessions are held in the InterContinental Dubai Festival City
Price: Sessions range from free entry to Dh125 tickets, with the exception of special events.
Hot Tip: If waiting for your book to be signed looks like it will be timeconsuming, ask the festival’s bookstore if they have pre-signed copies of the book you’re looking for. They should have a bunch from some of the festival’s biggest guest authors.
Information: www.emirateslitfest.com
The specs
Engine: 2.9-litre twin-turbo V6
Power: 540hp at 6,500rpm
Torque: 600Nm at 2,500rpm
Transmission: Eight-speed auto
Kerb weight: 1580kg
Price: From Dh750k
On sale: via special order
About Karol Nawrocki
• Supports military aid for Ukraine, unlike other eurosceptic leaders, but he will oppose its membership in western alliances.
• A nationalist, his campaign slogan was Poland First. "Let's help others, but let's take care of our own citizens first," he said on social media in April.
• Cultivates tough-guy image, posting videos of himself at shooting ranges and in boxing rings.
• Met Donald Trump at the White House and received his backing.
Mohammed bin Zayed Majlis
