Balad was set up four years ago to smooth the flow of remittance payments from the Arab Gulf and Europe back to Egypt. Money flows from the diaspora community and others to families and businesses in Egypt have surged to $43.1 billion in the past year.
A majority investment from Egyptian asset management firm EFG Holdingwill help Balad scale consumer remittances and also offer infrastructure for other financial institutions to offer remittance services. The women-led firm is looking to expand to Libya, Morocco, Tunisia and Saudi Arabia.
The deal gives EFG the option to acquire Balud outright within the next four years. First Circle, a women-led and focused fintech venture capital firm, for now retains its stake in Balad.
First Circle first backed Balad in 2022, at a time when Balad struggled to raise capital because local investors were concerned about regulatory hurdles for remittances.
“Balad is not replacing banks. It is driving digitization of remittances and helping banks get more remittances into the system through formal channels,” First Circle’s Selma Ribica told ImpactAlpha.
The firm reupped its investment in 2024.
EFG Holding’s investment and network across the Middle East and North Africa “open up so many opportunities for Balad,” Ribica said.
