• Catalyst Partners Middle East (CPME) plans to acquire Qardy, Egypt’s digital lending marketplace, through a share swap, marking a significant move in its expansion within the digital lending sector.
• CPME debuted on the Egyptian Exchange (EGX) with 1 million shares, raising EGP 10 million in capital, and has recently been approved to increase its capital to EGP 235 million to support its growth plans.
• Qardy, founded in 2022, connects financial institutions with micro, small, and medium-sized enterprises (MSMEs) in Egypt.

CPME Set to Acquire Qardy through Share Swap

MENA-based investment firm Catalyst Partners’ SPAC, Catalyst Partners Middle East (CPME), is set to acquire Qardy, a digital lending marketplace. The acquisition will be through a share swap arrangement, according to an announcement from CPME.

This move is part of CPME’s strategic expansion and marks a significant step. Both the CPME and Qardy aim to strengthen their positions in the digital lending sector.

CPME’s Debut on the Egyptian Exchange

CPME made its debut on the Egyptian Exchange (EGX) last month, listing 1 million shares at a nominal value of EGP 10 per share. This is to hit in total issued capital of EGP 10 million, according to Enterprise News website.

A Special Purpose Acquisition Company (SPAC) like CPME raises funds through an initial public offering (IPO). SPAC uses those proceeds to merge with or acquire an existing company. The process is to bypass the traditional IPO route for target companies.

Capital Increase Approval

Additionally, this approval came in the wake of positive reviews from the Financial Regulatory Authority (FRA). Investors were given a four-day period to subscribe to the capital increase.

Earlier this month, an extraordinary general assembly meeting approved a proposal to raise CPME’s capital to USD 4.6 million (EGP 235 million). And this is by offering 22.5 million additional shares at a value of EGP 10 per share.

The acquisition of Qardy will also be carried out through a full or partial share swap, in which CPME will acquire the entire digital lending platform in exchange for issuing new shares. This arrangement reflects CPME’s strategic intent to leverage Qardy’s presence in Egypt’s digital lending space.

Qardy’s Role in Egypt’s Digital Lending Ecosystem

Founded in 2022, Qardy is Egypt’s first online lending marketplace connecting financial institutions. It is mainly targeting micro, small, and medium-sized enterprises (MSMEs) seeking funding.

Furthermore, Qardy provides tailored financial solutions to support MSMEs’ working capital and growth needs. The process is through partnerships with national and commercial banks, as well as leasing, factoring, and microfinance companies.