Egypt’s First SPAC Merger Ushers in New Era for Fintech and Public Listings

May 26, 2025 OnlineChiefPriest Tech News 192

Egypt has just hit a major milestone in its financial and startup ecosystem. Catalyst Partners Middle East has successfully completed the country’s first-ever SPAC (Special Purpose Acquisition Company) merger, acquiring rising fintech player Qardy in a deal valued at EGP 1.16 billion—around $23.15 million.

This landmark transaction puts Qardy in the spotlight as the first fintech company in Egypt to go public via a SPAC—a route that’s still relatively new in the region, but could quickly gain traction as more startups look for alternative paths to funding and growth.

Qardy’s Journey So Far

Launched in 2022 by founders Abdel Aziz Abdel Nabi, Aser Yahya, and Tamer El-Manesterly, Qardy has been solving a real pain point in Egypt’s economy—giving SMEs (small and micro enterprises) access to financing. Its digital platform connects these businesses with financial institutions, offering loans, factoring, and leasing solutions to parts of the market that are often overlooked.

According to the company, the merger won’t disrupt daily operations. Instead, Qardy will retain its current team and platform but gain access to Catalyst’s financial backing, infrastructure, and long-term support—resources that will help fuel its next growth phase.

Catalyst: Making a Strategic Move

Catalyst Partners Middle East is no stranger to ambitious plans. A spin-off of the Cairo-based investment advisory firm Catalyst Partners, it became the first FRA-approved SPAC in Egypt back in September 2024. This acquisition is its debut move, made through a share swap that sees Catalyst issuing new shares in exchange for Qardy’s equity.

It’s just the beginning—Catalyst’s chairman, Maged Shawky, has revealed that the firm is aiming to acquire between six and ten companies, with a couple more fintech firms likely in the pipeline. This aligns neatly with Egypt’s broader push for financial inclusion and economic digitization, especially through private-sector-driven innovation.

Why This Deal Matters

Despite being just three years old, Qardy has already proven its value. The company serves over 6,000 corporate clients and has processed more than $12 million in loan transactions. With partnerships across multiple Egyptian banks and non-banking financial institutions, Qardy is clearly tapping into a vital need—supporting working capital and expansion financing for MSMEs (micro, small, and medium enterprises).

And it’s not just Catalyst that sees the potential. In August 2024, Qardy raised a seven-figure pre-seed round from backers like White Field Ventures and Vastly Valuable Ventures, setting the stage for regional growth and tech upgrades—ambitions that are now expected to accelerate under its new parent company.

Preparing for the Future

Catalyst did some groundwork to prepare for this merger. It listed 1 million shares on the Egyptian Exchange (EGX) in December at EGP 10 per share and raised its capital to EGP 10 million. It’s also on track to increase capital further to EGP 235 million, with regulatory green lights already secured and investor subscriptions still open.

What’s Next for Egypt’s SPAC Market?

While SPACs have been making waves globally, especially in the U.S., they’ve been slow to catch on in MENA. That’s partly due to regulatory hurdles and market readiness. But this deal could be the proof-of-concept the region needs. With Egypt’s government pushing for more digital financial services and greater economic inclusion, SPACs may now be a viable way forward for startups looking to scale or exit.

Qardy’s public debut is more than just a financial transaction—it’s a signal that Egypt’s fintech scene is maturing and ready to explore global-standard investment tools. If more deals like this follow, Egypt could quickly become a hub for innovative public listings in the Middle East.

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