British International Investment

Algebra Ventures II Coöperatief U.A.

EgyptMoroccoNetherlandsNorth AfricaCommunications & IT servicesConsumer - HealthConsumer - other servicesFinancial servicesFood & Agriculture

Algebra Ventures II is an Egypt-focused venture capital fund investing in entrepreneurial founders building transformative companies.

Our investment

Description of the investment.

This investment is part of our strategy to: (i) support local entrepreneurial ecosystems in our markets to build new businesses which create jobs, and; (ii) provide us access to early-stage companies that have the potential to create transformational impact at scale.

Algebra Ventures II aims to catalyse Egypt's venture capital market. The fund will support the growth of innovative and scalable companies, improving access to economic opportunities and providing essential goods and services to businesses and consumers in Egypt.

Impact information

Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.

What?

Impact

Our investment will help generate income opportunities through direct and indirect job creations (SDG 8.5), and develop tech-enabled access to market and financial services (SDG 8.10) in order to further unlock economic opportunities for businesses and consumers.

How?

Primary Secondary

Our commitment will help build a track record and prove the viability of early-stage venture capital funds in Egypt. This will help attract a greater supply of capital to this segment and further unlock economic growth.

The fund will invest in tech-enabled business models that are expected to contribute at scale to productive employment while fostering the development of fintech and marketplace business models.

Who?

Stakeholder Geography Characteristics
Employees and suppliers

Primarily Egypt, with a subset in West and East Africa

Primarily low and middle-income

Suppliers and consumers

Primarily Egypt, with a subset in West and East Africa

Micro, small and medium enterprises, smallholder farmers

How much?

Scale Depth/Duration

Significant revenue increase and job creation in portfolio companies, as well as more than ten million direct users.

The effect on the overall venture capital market in Egypt will take several years to materialize (over 5 to 7 years), although the impact on job creation will be more immediate, with a focus on less supported founders (including women founders).

Contribution/additionality

Contribution/additionality
  • Financial additionality: The commercial market does not offer capital in sufficient quantity to meet the investee s need.
  • Value additionality: We will help enhance business integrity practices in order to reduce risks

Risk

Execution Risk
  • The impact and commercial cases rely on the ability of the fund manager to successfully execute its strategy and demonstrate financial viability.

Impact score

Impact score (at point of investment)

The Impact Score is a tool to help us manage our performance against our strategic impact objectives. It is designed to incentivise investments that support our productive, sustainable, and inclusive objectives. You can find out more here.

The Impact Score is published for investments made from 2022 onwards. The Impact Scores are calculated at the point of investment. We publish the Impact Scores of new investments annually, once the information has been externally assured by an independent third party.

6

Environmental and social information

  • Environmental and social summary

    A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.

  • Environmental and social risk

    A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.

Environmental and social summary

We agreed an ESAP which included the strengthening of their ESMS tailored to venture capital risks and opportunities, and covering all stages of the investment cycle, as well as the development of safeguarding procedures, and internal and external grievance mechanisms.

Environmental and social risk

Medium-Low

Reporting and Complaints Mechanism

The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.

For any other general enquiries contact us at [email protected]

  • Key facts

    Last updated

    When the last quarterly update of the website database occurred.

    :
    June 2024
    Project number

    An identifier number shared by investments in the same project.

    :
    D5012
    Status

    The current status of the investment (green flag for active and red flag for exited).

    :
    Active
    Region

    The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.

    :
    North Africa
    Sector

    We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.

    :
    Communications & IT services, Consumer - Health, Consumer - other services, Financial services, Food & Agriculture

    We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.

    For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.

    For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.

    For direct equity investments, this is the date at which British International Investment exited the investment.

    For debt investments, this is the date at which the final debt repayment was made.

    For funds, this is the date at which the fund was terminated.

    For underlying fund investments, this is the date at which the fund manager exited the investment.

    The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.

    For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.

    The currency in which the investment was made.

    Investment type :
    Fund
    Start date :
    August 2022
    Amount :
    $10m
    Currency of investment :
    USD
    Fund Manager:
    Algebra Ventures II B.V.
    Domicile

    The company or investment fund’s place of incorporation.

    :
    Netherlands

Investments made by this fund into companies:

For further information about these companies, visit https://www.algebraventures.com/

Investment name Country Region Sector Start date Status
Blnk B.V. Egypt North Africa Consumer - other services December 2023 Active
Deepecho Morocco North Africa Consumer - Health July 2023 Active
Dx Wand Egypt North Africa Communications & IT services March 2024 Active
Efreshli Egypt North Africa Consumer - other services March 2024 Active
MOZARE3 HOLDING B.V. Egypt North Africa Food & Agriculture September 2022 Active
MTOR E-COMMERCE, BV Egypt North Africa Consumer - other services June 2022 Active
SMARKT HOLDING B.V. Egypt North Africa Consumer - other services April 2022 Exited
Sylndr PTE LTD Egypt North Africa Consumer - other services April 2022 Active

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