Investment Secured Strategically by Lorax, with AfricInvest Departing
In a significant move that highlights a shift in the fintech funding landscape across Africa and the Middle East (MENA), Egypt-based fintech infrastructure provider MDP has announced a new strategic investment led by Lorax Capital Partners (LCP). This transaction marks the complete exit of AfricInvest, a long-time partner, from its investment in MDP [1][3][4].
This change in ownership signifies a new phase of growth for MDP, with Lorax Capital Partners stepping in as the lead investor in the company’s next expansion stage. The deal serves as a vote of confidence from LCP in MDP's business model and growth potential in the Middle East and African fintech infrastructure markets [1][3][5].
MDP's platform supports card issuance and processing, cloud-native digital banking, and a robust suite of APIs designed to power fintech innovation. The new capital will fuel MDP's expansion into additional markets, further strengthening its presence across emerging economies [6][7].
Co-founded and led by Ahmed Nafie, MDP's new funding will enable the company to deepen its technology stack, expand into new markets, and continue providing a comprehensive digital payment infrastructure solution to clients across Africa and the Middle East [7][8].
Nafie hinted that MDP is targeting greater penetration into underserved regions where demand for secure, scalable payment infrastructure continues to rise [9]. To date, MDP has issued more than 350 million cards and processed over 1 billion transactions [10].
The investment round also includes the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), and Proparco, in addition to Lorax Capital Partners [2][3]. Development finance institutions are focusing on companies that support financial inclusion through back-end technology solutions [11].
While often less visible than consumer-facing fintechs, fintech infrastructure is essential to scaling digital finance. As startup fundraising in the region is below the peaks of 2021, firms with proven scale, clear paths to profitability, and foundational infrastructure are still attracting investment [12].
The maturing ecosystem for fintech infrastructure players in the region is reflected in the complete exit of AfricInvest from MDP, and this trend indicates a broader rise in strategic investments targeting financial infrastructure in Africa and the Middle East [4].
Lorax Capital Partners has invested in Egyptian fintech and growth-stage enterprises, and the decision to back MDP aligns with its strategy of supporting high-impact sectors in the region [5]. This strategic investment in MDP not only marks a transition in MDP’s ownership but also renewed momentum for scaling fintech infrastructure in the region.
References: [1] MDP Press Release, [2] EBRD Press Release, [3] IFC Press Release, [4] Proparco Press Release, [5] Lorax Capital Partners Press Release, [6] MDP Website, [7] Co-founder and CEO Ahmed Nafie's LinkedIn Profile, [8] MDP's Crunchbase Profile, [9] Ahmed Nafie's interview with TechCrunch, [10] MDP's Annual Report, [11] EBRD's Annual Report, [12] African Private Equity and Venture Capital Association (AVCA) Report.
This strategic investment by Lorax Capital Partners (LCP) signals a new growth phase for MDP, as they lead the company's expansion stage, highlighting their faith in MDP's business model and growth potential in the Middle East and African fintech infrastructure markets. With the new capital, MDP aims to deepen its technology stack, expand into underserved regions, and continue providing comprehensive digital payment infrastructure solutions, all with the goal of increasing financial inclusion through back-end technology solutions.
