Egyptian Fintech Halan Expands into Pakistan with $10 Million Investment

KARACHI: The Egyptian fintech Halan Microfinance Bank has acquired Advance Microfinance Bank, allowing it to grow into Pakistan.

Over the next five years, the firm intends to invest $10 million and build a loan portfolio of $500 million.

This year, Halan will open 100 additional branches and introduce a digital banking app. It plans to expand its operations once it receives a national banking licence.

The bank’s digital financial services, microfinance, and small and medium enterprise lending will target female entrepreneurs, farmers, and car buyers.

The gross loan portfolio in Pakistan’s microfinance sector increased from Rs275 billion in 2018 to Rs565.8 billion in 2024, while the number of active borrowers reached 10.78 million. The mission of Halan is to broaden people’s and companies’ access to capital.

In Pakistan, the company already has 50,000 users and is planning to double that number in the near future. It has distributed $11 billion worldwide, including in Pakistan, Egypt, the UAE, and Turkey.

In addition to creating financial products that adhere to Shariah law, Halan is teaming up with regional businesses to offer integrated finance options including salary advances and installment payments. Halan was able to make use of an existing licence and join the market swiftly after acquiring Advance Microfinance Bank.