MNT-Halan has secured fresh funding through the debt markets, raising 2.214 billion Egyptian pounds, about $41.3 million, in a securitisation bond issuance designed to strengthen liquidity for its consumer lending operations.
Halan Consumer Finance, the consumer finance arm of the Cairo-based fintech, completed the issuance.
The deal enables the company to free up capital tied to existing loans and redirect it toward issuing new credit without raising additional venture capital or diluting shareholder equity.
This transaction represents the fifth tranche under the seventh securitisation programme managed by Capital Securitisation. The broader programme is structured to reach a total value of around EGP 11.5 billion, roughly $214.8 million.
The latest offering follows another major issuance in October, when MNT-Halan raised about EGP 3.4 billion, or $71.4 million, through a similar securitised bond deal. Both offerings sit within a three-year securitisation framework approved by the Financial Regulatory Authority.
For MNT-Halan, securitisation has become the engine that keeps its lending machine running. The process allows the company to bundle receivables from existing borrowers and sell them to investors as bonds that generate returns over time.
The approach converts future repayments into immediate capital, allowing the company to keep extending new loans while maintaining balance sheet flexibility.
The strategy aligns with the scale of the business MNT-Halan has built over the past few years. Founded in 2018 as a ride-hailing platform focused on two- and three-wheel vehicles, the company expanded rapidly into a broader financial services ecosystem.
Today, it operates as Egypt’s largest non-bank lender to underserved consumers, providing digital payments, microenterprise loans, consumer financing, and logistics services through a single platform.
Maintaining growth in that environment requires constant access to funding. Consumer lending platforms typically face the challenge of balancing rapid loan issuance with stable capital sources.
By repeatedly tapping securitisation markets, MNT-Halan has created a financing loop that converts its expanding loan portfolio into repeatable liquidity.
This structure played a key role in the company reaching unicorn status in 2023. That milestone came after a financing round combining $200 million in equity with another $140 million raised through two securitisation transactions.
The approach is increasingly common among fintech lenders across the region. valU, one of Egypt’s leading buy now pay later platforms, has relied on a similar strategy to support its expansion. Since 2021, valU has raised roughly EGP 12.3 billion, about $246 million, through a series of securitisation issuances.
For fintech lenders operating in emerging markets, securitisation offers an advantage that venture capital cannot always provide.
It supplies recurring funding independent of fundraising cycles, allowing companies to expand credit operations without waiting for equity rounds. In economies where inflation pressures households and small businesses, demand for consumer credit often rises, and access to liquidity becomes essential for lenders attempting to meet that demand.
The continued investor appetite for MNT-Halan’s securitised bonds suggests confidence in the strength of its loan portfolio and repayment performance.
At the same time, the model depends heavily on functioning domestic capital markets and stable borrower repayment patterns.
When those conditions hold, securitisation can serve as a durable financing backbone for high-volume lending platforms. In North Africa’s fintech sector, MNT-Halan has demonstrated how that structure can support rapid scale while keeping equity dilution under control.
This article was culled from Launch Base Africa.
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