Unveiling the narrative of Africa’s latest unicorn, MNT-Halan
Exploring the roots and growth of Egypt’s MNT-Halan imparts crucial insights for innovators across Africa and globally.
Discover these five lessons from MNT-Halen’s journey:
- Target underserved markets with less competition.
- MNT-Halan’s key entities—Mashroey, Tasaheel, Raseedy, and Halan—excelled in their niches by delivering distinct value.
- Partner with influential entities to expedite growth.
- Early on, MNT-Halan’s core companies utilized the resources of GB Auto, a prominent player in the automotive market.
- Stay realistic—abandon what’s not working and amplify successful ventures.
- MNT-Halan pivoted from ride-hailing to focus on lending, ensuring positive unit economics.
- Embrace serendipity and seize new opportunities.
- Mounir Nakhla, MNT-Halan’s founder, embraced opportunities like launching Mashroey and Tasaheel as GB Auto subsidiaries and forming the tech-centric Halan venture.
- Play the long game and safeguard your reputation.
In Cairo’s Four Seasons, where 30% occupancy translates to financial losses due to substantial fixed costs, Mounir Nakhla, Managing Partner at EQI, distinguishes his approach with lower fixed costs and a welcoming attitude toward competition.
Echoing profitability, Mounir Neamatalla, Founder of EQI, highlights Adrère Amellal’s success and emphasizes the unique mentorship bond developed in Siwa by working closely with locals.
These principles, prioritizing underserved communities, seizing opportunities ahead of competition, and emphasizing profitability, define Mounir’s professional journey.
Enter the Mashro’ey project in 2009, driven by the surge in tuk-tuks on Egyptian streets. GB Auto, with a dominant share in the tuk-tuk market, recognized the potential but faced a financing gap. GB Auto partnered with EQI to establish Mashro’ey, tapping into the unmet demand for tuk-tuk financing. Mounir Nakhla, drawn by the lack of competition and an underserved market, co-founded Mashroey under GB Auto in 2009, becoming its Managing Director.
Under Mounir Nakhla’s leadership, Mashro’ey flourished, filling the void in tuk-tuk financing. GB Auto’s foresight, coupled with EQI’s strategic collaboration, propelled Mashro’ey to success. This venture not only addressed the financing challenges faced by tuk-tuk operators but also demonstrated the power of identifying untapped markets.
In a landscape where tuk-tuk operators were viewed skeptically, Mashro’ey’s approach under Nakhla’s guidance proved transformative. By 2009, Mounir Nakhla, with a keen eye for opportunities and a commitment to serving overlooked segments, navigated the hurdles and established Mashro’ey as a significant player in Egypt’s evolving transportation sector.
The Mashro’ey project is a testament to Nakhla’s ability to embrace challenges and turn them into thriving ventures. The blend of financial acumen, strategic partnerships, and a dedication to fostering local relationships shaped Mashro’ey into a pioneering force in the tuk-tuk market, showcasing Nakhla’s entrepreneurial prowess.
“GB Auto, a major player in the automotive market, took a 90% ownership stake in Mashroey, with EQI holding the remaining 10%. In just three months, Mashroey became a driving force, contributing over 10% of sales for GB Auto’s motorcycles and three-wheelers segment, with minimal defaults. GB Auto’s annual report highlighted Mashroey’s exceptional performance, projecting continued success and potential expansion into other areas of microfinance. Over the next five years, Mashroey remained a key sales driver, benefiting from the growing popularity of tuk-tuk taxis in Egypt. Mounir Nakhla, the founder, faced skepticism but believed in the honesty and potential of tuk-tuk drivers, proving that providing financial services to the unbanked and underbanked segments was not only socially impactful but also commercially viable.”
“Even though Halan had achieved success by external standards, Mounir Nakhla, the founder, was focused on profitability. Looking at the experiences of Lyft and Uber, which faced challenges with their unit economics after going public, Nakhla realized the need for a shift. He decided to reduce investment in ride-hailing and delivery and refocus the team on financial services, particularly with Mashroey and Tasaheel in mind. This led to the development of Neuron, their in-house banking software, to provide digital financial services to the unbanked and underbanked population in Egypt. With over 100 million inhabitants and a large mobile phone user base, Nakhla saw an opportunity to bank the unbanked conveniently.”
Mounir Nakhla saw the potential in focusing on financial services instead of just ride-hailing. By developing their banking software called Neuron, Halan transformed into a platform offering digital financial services to Egyptians. With over 100 million people in Egypt, but only a fraction having bank accounts, this is a great way to bank the unbanked using their mobile phones. It’s all about making banking accessible to everyone!
MNT-Halan generated over $300 million in revenue in 2022! That’s incredible! So, what’s next for the firm? Well, according to Mounir Nakhla, they’re looking to expand internationally. They’re planning to make strategic moves through mergers and acquisitions in other markets, especially in Africa and other places with large unbanked populations. Mounir Nakhla has always been passionate about serving underserved communities, and this expansion is a great way to reach even more people in need. It’s exciting to see their solid technology and successful strategy being taken to new places!
Mounir Nakhla had some amazing support along the way. David Halpert’s tech-focused idea and the backing of GB Auto helped MNT-Halan grow into what it is today. It’s impressive how they’ve built such a successful platform to serve underserved communities. Can’t wait to see what they achieve with their international expansion!
It’s fascinating to see how larger organizations have played a crucial role in supporting Africa’s unicorns and unicorns. Just like Access Bank’s support of Flutterwave, Interswitch’s bank consortium approach, Opera’s backing of OPay, and Transitions pre-install support of PalmPay. These collaborations are often overlooked, but they are vital for creating and nurturing valuable companies. It’s important to recognize the efforts and hard work of innovators shaping the future across the continent.
These collaborations between larger organizations and innovative startups are crucial for the growth and success of valuable companies in Africa. It’s inspiring to see how these partnerships provide the necessary support and resources for these unicorns and unicorns to thrive. They truly highlight the collective effort and determination to build a bright future for the continent.
It’s important to acknowledge and appreciate the support that larger organizations provide to startups in Africa. These collaborations play a significant role in creating an ecosystem where valuable companies can flourish. And it’s amazing to see how these efforts don’t diminish the hard work and dedication of the innovators driving change across the continent. They truly are building a bright future for Africa!
