Swypex launches financial management platform to boost businesses in Egyptian market

Doaa A.Moneim , Wednesday 8 May 2024

Financial management platform Swypex has launched its all-in-one financial platform to boost businesses in the Egyptian market, following a $4 million seed round led by the US-based venture capital firm Accel, marking its first fintech investment in the region, the company said in a statement Tuesday.

Swypex

 

Foundation Ventures, The Raba Partnership, and other angel investors have also participated in this investment.

Swypex, licensed by the Central Bank of Egypt (CBE), became the first comprehensive platform to eliminate financial inefficiencies for small and medium-sized enterprises (SMEs) and big corporates.

Businesses can benefit from the automation of the workflows the platform introduces, including invoice management and smart corporate cards.

“Swypex is built to give Egyptian businesses a competitive advantage, providing them with the efficiency and growth they deserve. By empowering businesses with the most powerful corporate card in Egypt and our all-in-one financial platform, we will help businesses simplify their financial operations and improve their financial health,” said CEO of Swypex Ahmad Mokhtar.

“As the payments space continues to digitize, the opportunity to provide modern fintech products to Egyptian businesses has become even more important,” said Richard Kotite, vice president at Accel.

He added that the solutions provided by Swypex address many of the key pain points businesses regularly face while driving a step-change in efficiency.

SMEs represent around 96 percent of all registered companies in the Middle East and Central Asia and employ about half of the total labour force, according to a recent report published by the International Monetary Fund (IMF). 

The Middle East, particularly, has the largest gap in financial inclusion in the world, according to the report.

Moreover, a recent study by the OECD shows that over 90 percent of SMEs employ less than 50 employees, contributing to over 75 percent of total formal employment in the MENA region.

The numbers indicate how SMEs need to adopt such financial management solutions to facilitate their work process in the communities where they work, by pushing the financial inclusion process as a part of their sustainable development policies.

Egypt's financial inclusion rate has soared to 70.7 percent by the end of 2023, up from 64.8 percent in December 2022, signifying an overall growth rate of 174 percent from 2016 to 2023, according to the latest figures released by the CBE.

The country's financial inclusion growth rate stands out as one of the best among peer countries, emphasizing the significant progress in citizens' access to financial services tailored to their needs.

According to figures, the financial inclusion rate for youth, aged 16-35, reached 36.6 million individuals, recording 51.5 percent with a growth rate of 48.5 percent from 2020 to 2023.

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