Tanmiya’s $130 million fund targets Egypt’s established businesses
Expanding a business often means spending money before the extra income arrives. A manufacturer may need new machinery, a food company may want to open more outlets, and a logistics operator may need additional vehicles to take on more customers.
Tanmiya
Expanding a business often means spending money before the extra income arrives. A manufacturer may need new machinery, a food company may want to open more outlets, and a logistics operator may need additional vehicles to take on more customers.
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Expanding a business often means spending money before the extra income arrives. A manufacturer may need new machinery, a food company may want to open more outlets, and a logistics operator may need additional vehicles to take on more customers. Egyptian investment firm Tanmiya Capital Ventures is putting $130 million towards companies facing these kinds of growth decisions.
Its second fund, Tanmiya Capital Fund II, closed above its initial $120 million target. The European Investment Bank (EIB), through EIB Global, committed $37.5 million. Tanmiya plans to invest in between six and eight companies. It has not announced all the businesses that will receive funding.
Established companies are the target
“Tanmiya plans to invest in just six to eight companies, with the money aimed at businesses ready to expand.”
The fund will consider businesses in healthcare, education and training, financial technology, consumer goods, logistics and transport. These are not necessarily startups looking for money to develop an initial product. Tanmiya is targeting companies that have already established operations and want to increase their capacity or reach more customers.
The firm also plans to help the companies it backs improve management practices, governance and business operations. Two businesses already in its portfolio are pharmaceutical manufacturer Copad and Egyptian bakery company El Abd Patisserie, according to EnterpriseAM.
Who is funding the investment?
Alongside the EIB, investors in the fund include the Egyptian-American Enterprise Fund, the European Bank for Reconstruction and Development, the International Finance Corporation and Egypt’s Micro, Small and Medium Enterprise Development Agency. The EIB has also set a gender-related target for the portfolio: at least 30% of the companies should meet one or more of its criteria for supporting gender equality. The fund is expected to contribute to job creation as its investments develop.
Six to eight companies will share the investment
The fund’s $130 million headline figure may attract attention, but the number of planned investments is relatively small. Tanmiya intends to select just six to eight businesses, rather than distribute the money widely across Egypt’s small-business sector.
That distinction matters for companies looking for finance. The fund is not an open grant scheme, and the announcement does not confirm that applications are currently being accepted. For a business seeking this kind of capital, the practical issue is whether it has a clear plan for expansion and can show what the investment would pay for. That might involve increasing output, adding locations, improving distribution or entering a new market.
Tanmiya has set out the size of the fund and the sectors it wants to target. Details of the remaining investments, including the amounts allocated to individual companies, will show how the money is being used. For now, the fund gives a selected group of Egyptian businesses a potential source of capital at a stage when expanding operations can require more money than they can raise internally.
