New report tracks emergence of Egypt as African tech startup powerhouse
Substantial will increase in startup exercise and a large influx of capital has seen the Egyptian startup ecosystem set up itself as one in every of Africa’s “huge 4” inside a comparatively brief time frame, with the sector’s growth aided by proactive authorities and a robust native startup help system.
That’s based on the newly-released Egyptian Startup Ecosystem Report 2021 from Disrupt Africa, which dives into the native ecosystem by analysing energetic startups, native help networks, and funding and exit exercise during the last seven years.
Since launching its analysis arm in 2016, Disrupt Africa has constructed up a major portfolio of publications, most notably the African Tech Startups Funding Report and Finnovating for Africa, beforehand out there on the market however now made out there free for all by way of open-sourcing initiatives with numerous companions throughout the continent’s tech ecosystem.
The Egyptian Startup Ecosystem Report 2021 is the primary geographically-focused publication launched by the corporate, made doable by help from key companions the Info Know-how Business Improvement Company (ITIDA) and World Ventures. Different supporters of the report are AUC Enterprise Lab (V-Lab) and Quona Capital.
The publication finds that not less than 562 tech startups have been in operation throughout Egypt as of September 2021, making it the fourth largest startup ecosystem on the continent, behind solely South Africa, Nigeria and Kenya. These startups make use of nearly 13,000 individuals between them.
E-commerce is probably the most populated sector, with one-fifth of the nation’s tech startups energetic in that vertical. Certainly, there are nearly twice as many e-commerce and retail-tech startups as there are fintech ones, which got here in second. Startups are energetic throughout a various array of areas, with e-health, ed-tech, logistics, recruitment and AI/IoT additionally particularly busy.
Virtually 40 per cent of Egyptian tech startups have undergone some type of acceleration or incubation, a formidable statistic and one which speaks favourably to an area help ecosystem that additionally incorporates authorities, corporates and universities.
More and more, these startups are additionally supported by a robust funding ecosystem. No less than 318 Egyptian startups have raised nearly US$800 million since 2015, based on the report, and capital influx into the ecosystem has been rising year-on-year. The US$156,248,000 raised in 2020 represents a 1,716 per cent enhance on the US$8.6 million banked in 2015, and 2021 seems to be set to shatter all data. To this point, greater than 80 Egyptian startups have secured greater than US$400 million between them this 12 months.
“Egypt has really emerged as a tech powerhouse for Africa, and now rivals – and even surpasses – extra established startup ecosystems reminiscent of South Africa, Nigeria and Kenya for ranges of entrepreneurial innovation and funding. Disrupt Africa is delighted to launch its first country-focused report with Egypt as its topic, and thanks its companions for making it free to all,” stated Tom Jackson, co-founder of Disrupt Africa.
“Within the curiosity of constructing bridges between Egypt and the broader continent, the report additionally seems to be at a brand new pattern, whereby Egyptian startups are increasing their companies into Sub-Saharan Africa. Whereas traditionally Center Japanese markets would have been extra apparent locations for enlargement, increasingly Egyptian firms are seeing alternatives in the remainder of Africa, and extra Africa-focused buyers are placing cash into Egypt. These are very constructive developments,” stated Gabriella Mulligan, co-founder of Disrupt Africa.
“As capital allocators, our funding decision-making course of is guided by information and market perception. But, within the nascent ecosystem of rising markets, data just isn’t all the time available. Disrupt Africa is stepping in to fill on this hole, and we’re thrilled to accomplice with them for this report on a market we’re constantly and exceedingly enthusiastic about,” stated Basil Moftah, basic accomplice at World Ventures.
“For the previous 5 years, AUC Enterprise Lab’s Fintech Accelerator has been dedicated to enabling fintech entrepreneurs and empowering them with the data and networking alternatives they really want. We’re gladly supporting the fintech part of Disrupt Africa’s Egyptian Startup Ecosystem Report because it affords insights for anybody searching for details about the area and its key gamers and the rising ecosystem at massive,” stated Dr Ayman Ismail, AUC’s Abdul Latif Jameel Endowed Chair of Entrepreneurship and AUC V-Lab Director.
“Superior expertise, a quickly rising economic system, and good regulation have attracted Quona to Egypt as an investor, however entry to data is crucial for innovation,” says Monica Model Engel, co-founder and managing accomplice at Quona Capital, who focuses on the agency’s Africa and MENA investments in fintech and embedded finance. “We’re proud to be a accomplice of this inaugural report from Disrupt Africa, within the hopes that it’s going to spur much more fintech and embedded finance development in Egypt.”
As with this 12 months’s African Tech Startups Funding Report 2021, which has been downloaded nearly 4,000 occasions, and Finnovating for Africa 2021, launched in June and already downloaded 2,000 occasions, the Egyptian Startup Ecosystem Report 2021 is on the market to all without cost, making the information and evaluation contained in its pages accessible to these for whom the knowledge is most beneficial – entrepreneurs.
For extra data or to obtain the report please go to this web page or electronic mail Gabriella on [email protected], or Tom on [email protected].
About Disrupt Africa
Disrupt Africa is the one-stop-shop for all information, data and commentary pertaining to the continent’s tech startup – and funding – ecosystem. With journalists roaming the continent to search out, meet, and interview probably the most revolutionary and disruptive tech startups, Disrupt Africa is a real showcase of Africa’s most promising companies and enterprise concepts. Its analysis arm releases in-depth experiences on numerous features of the African tech startup ecosystem. Particulars right here.
The IT Business Improvement Company (ITIDA) is the manager arm of the Egyptian Ministry of Communication & Info Know-how. Since its institution in 2004, ITIDA’s core ideology has been spearheading the event of Egypt’s IT trade to extend its international competitiveness and make it a key contributor to the nation’s financial development.
Understanding the numerous position of innovation and tech-driven entrepreneurship as key drivers for financial development, ITIDA collaborates with distinguished private and non-private stakeholders together with universities, multinationals, accelerators, incubators, buyers to nurture and help the event of rising tech and tech-enabled startups.
About World Ventures
World Ventures is a UAE-based enterprise capital agency, investing in founders and concepts scaling throughout rising markets. World Ventures backs global-minded founders which can be main growth-stage firms and utilizing expertise to rework rising markets. Portfolio firms embody Arrow Labs, Buseet, Elmenus, Floranow, Helium Well being, Vacation Me, Lean, Mamo, A lot:on, Ogram, Paymob, Proximie, Pyypl, Spider Silk, Tabby, Tarabut Gateway, Workforce Apt, Tribal and Zension. Noor Sweid and Basil Moftah are the Normal Companions of World Ventures. Extra data will be discovered at https://www.international.vc/.
About AUC V-Lab
AUC Enterprise Lab (V-Lab) is Egypt’s first university-based startup accelerator and a number one accelerator within the Center East and Africa based in 2013. It helps innovation-driven and passionate entrepreneurs seeking to construct Egypt’s subsequent technology of tech unicorns by means of a sector-agnostic accelerator and a fintech accelerator. Over the previous 5 years, AUC Enterprise Lab’s Fintech Accelerator powered by the Industrial Worldwide Financial institution and in partnership with the Worldwide Finance Company and Mastercard has graduated greater than 50 monetary expertise startups providing options throughout funds, financial savings, insurtech, infrastructure, lending and investments. In 2020, AACSB, the main enterprise community, ranked the V-Lab Fintech Accelerator among the many high 25 fintech improvements worldwide. So far, V-Lab startups have raised greater than EGP 3 billion in investments, generated EGP 835 million in revenues and created 8500+ jobs. V-Lab’s portfolio of graduates contains: Swvl, Bosta, El Gameya, Amanleek, Dentacarts and Rology.
About Quona Capital
Quona Capital is a enterprise agency targeted on fintech that may develop entry for underserved prospects and small companies in rising markets together with Africa, Latin America, and South and Southeast Asia. Quona’s workforce are skilled buyers and operators in each rising and developed markets, and put money into entrepreneurs whose firms have the potential to supply excellent monetary returns and promote breakthrough innovation in monetary inclusion. A few of Quona’s different investments in Africa/MENA embody Capiter (Egypt), Yoco (South Africa), Sokowatch (Kenya), Cowrywise (Nigeria), and Lulalend (South Africa). The agency’s influence efforts have been recognised by means of its choice as a prestigious “ImpactAssets 50 Impression Fund” for the previous two years. Quona acquired its begin by means of a strategic relationship with Accion, a worldwide non-profit with a legacy in microfinance and fintech influence investing