EDAFA Plans Subsidiary IPOs Next Year and Targets $10M Investment in Egypt’s Startups

«EDAFA is redefining the venture capital landscape in the MENA region by combining strategic investment with hands-on support for startups, empowering entrepreneurs to scale their businesses across borders.»

At GITEX Egypt, Essam Aly Mostafa, CEO of EDAFA, shared insights into the firm’s unique approach, highlighting how it identifies and nurtures high-potential Egyptian startups while providing them with the resources and guidance needed to succeed.
He discussed EDAFA’s expanding regional footprint, covering markets in Saudi Arabia, the UAE, Jordan, and beyond, and detailed the company’s focus on driving innovation in key sectors such as PropTech, EdTech, and DeepTech.

The conversation also explored how EDAFA aligns its investment strategy with the broader national visions of Egypt 2030 and Saudi 2030, supporting the growth of startups that contribute to economic diversification and digital transformation across the region.
Fintech Gate sat down with Mostafa to discuss how EDAFA empowers entrepreneurs, drives cross-border growth, and advances digital transformation in line with Egypt 2030 and Saudi 2030.

Interview by: Shaimaa Abu Al-Nasr

Q: This is EDAFA’s first participation at GITEX Egypt. Have you taken part in other editions, and what distinguishes Edafa from traditional service providers?

A: Yes, we have participated in other GITEX editions, including Abu Dhabi and Nigeria. Our presence in Egypt this year marks an important milestone as we deepen our engagement with the local ecosystem.

What differentiates EDAFA is that we are not a traditional service provider. We are a Saudi-Egyptian venture capital firm that invests directly in startups. We believe in putting real capital behind promising founders and supporting them as strategic partners.

Today, our portfolio includes 61 companies across multiple countries. At GITEX Egypt, we are showcasing six of our leading Egyptian startups to help them unlock new growth opportunities, expand their networks, and build strategic partnerships.

Furthermore, we provide comprehensive support to our clients, including investment guidance, software solutions, and marketing services. By combining operational, administrative, and technical expertise, we help businesses grow stronger, more flexible, and innovative, enabling them to seize digital opportunities and invest in transformative ideas.

Q: How strong is your footprint in Egypt today?

A: We entered the Egyptian market around a year and a half ago, and during this period, we have invested in more than 20 startups. Our investments span a broad range of stages, from Pre-Seed to Series A.
Egypt represents a strategic market for us due to its entrepreneurial talent and large, dynamic consumer base.

Q: Can you share the scale of your investments in Egypt?

A: Last year, our total deployed capital in Egypt reached approximately $8m. Although our initial target was $13m, we are highly selective and prefer to invest only in opportunities that meet our strategic and financial criteria.
For this year, we are targeting investments of around $10m, representing an increase of more than 25 percent.

Q: What sectors is EDAFA currently focusing on?

A: Our strategy is built around three core pillars: PropTech, EdTech, and DeepTech. In the property technology space, we collaborate with strong partners such as Prime Egypt and Coldwell Banker, and we have already established successful partnerships in Kuwait and Saudi Arabia.
We also see significant potential in education technology and health technology, particularly in Egypt, where digital transformation is accelerating across these sectors.

Q: You recently invested in a startup called Shares. What can you tell us about it?

A: Shares is a promising Egyptian startup launched in 2025 that focuses on fractional real estate ownership. It operates in a model similar to Nawy but enables individuals to invest in property with relatively small tickets starting from 500 SAR.
While the company is Egyptian, we are preparing for a major launch in Saudi Arabia. We are currently finalizing regulatory requirements with the Financial Regulatory Authority in Egypt and the Capital Market Authority in Saudi Arabia to ensure full compliance in both markets.

Q: How does EDAFA approach growth and mergers within its portfolio?

A: We believe strongly in strategic mergers as a pathway to building stronger, more scalable companies. For example, we are currently working with Medisoft, a Saudi-based HealthTech company with an established hospital client base, to support its expansion into Egypt.
In parallel, we identified an Egyptian startup offering similar services and are facilitating a merger to create a more competitive entity. We are even exploring the addition of a third company in Bahrain to further strengthen this regional platform.

Q: What is EDAFA’s typical ownership stake in its portfolio companies?

A: Our ownership typically ranges between five and 45%. In Egypt, our highest stake so far has been around 40%. We aim to maintain meaningful participation while ensuring founders remain motivated and aligned with long-term growth objectives.

Q: How does EDAFA differ operationally from traditional venture capital firms?

A: We position ourselves as business partners rather than just capital providers. We operate through a KPI-based investment model, where funding is released in phases based on measurable performance milestones.
Each portfolio company is supported by an investment manager with industry-specific expertise who oversees progress on a monthly or quarterly basis. This disciplined approach ensures capital efficiency and sustainable growth.

Q: How does EDAFA align with Egypt Vision 2030 and Saudi Vision 2030?

A: Our entire model supports the economic diversification and digital transformation goals outlined in both national visions. We believe startups are central to the future of regional economies.
In Saudi Arabia, our investments extend beyond technology to include industrial and manufacturing sectors. By empowering entrepreneurs and scaling innovative businesses, we contribute directly to job creation, innovation, and long-term economic resilience.

Q: What are EDAFA’s plans regarding IPO and future expansion?

A: EDAFA has been active in the Saudi market for ten years. While the firm itself is not planning an immediate listing, several of our subsidiaries, including Switch and Boutique, a luxury auction platform, are currently in the IPO pipeline for next year.
Geographically, we continue to expand beyond Egypt and Saudi Arabia into the UAE, Bahrain, Switzerland, and Kenya, which will be a primary focus in Africa for 2026. We are also entering Oman for the first time, marking another important step in our regional expansion strategy.

Q: How does this integrated strategy reflect EDAFA’s overall mission?

A: This strategy reflects our commitment to building a diversified, cross-border investment platform that supports high-growth startups and contributes meaningfully to the region’s evolving economic landscape.

In this context, on the other hand, there are many related sector news items that you can follow. For example, we highlight the most important ones in the following list:

• EDAFA Plans Subsidiary IPOs Next Year and Targets $10M Investment in Egypt’s Startups
• Edafa Venture Capital Acquires a Strategic 25% Stake in Bonyan Educational Platform
• Edafa Venture Capital Strengthens Partnerships with Startups to Drive Innovation and Growth
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