Fresh funds for Dawi: Primary care company Dawi Clinics is getting an EGP 250 mn investment led by Al Ahly Capital Holding (the National Bank of Egypt’s local investment arm) and with participation from existing investor the Egyptian American Enterprise Fund (EAEF), according to a joint press release (pdf). The fresh capital will finance the expansion of Dawi’s operations across the country, she said.

The EAEF and Al Ahly Capital both received minority equity stakes in Dawi in return for their investment, company co-founder and CEO Magda Habib told Enterprise, declining to disclose the percentage of the stakes or the split between the two firms. The transaction consisted of both primary and secondary share sales, with the majority coming via a capital increase, she added. EAEF has long been a partner in Dawi, investing USD 3 mn in the company back in 2018.

Growth mindset: Dawi is aiming to open 30 new branches in Egypt over a three-year period, with 10 opening each year, Habib said. The company currently runs 18 branches across 10 governorates and has another two under construction that are set to open this summer. “That ramp up is not just a matter of having the funds… it’s also gearing the entire organization to manage [those] branches, from a staffing, operation, audit and marketing perspective,” she added.

The pandemic set back expansion plans: Dawi’s previous target of opening 50 branches by next year was “too optimistic” and faced challenges when covid-19 hit, Habib said. “Covid was a very difficult time for us, but we’ve emerged as a stronger organization and we validated our concept,” she added.

The company likely won’t seek any further funding for the next two years and will instead focus on opening its new branches and getting “into an overall profitable mode” before looking at “the next phase of expansion that may require further funding,” Habib said.

Advisors: MHR & Partners and White & Case acted as legal counsel for Al Ahly Capital, Nour & Partners and Al Tamimi & Company were legal advisors for EAEF, and Dawi was represented by Ibrachy Legal Consultancy.

Correction: 23 May 2023

A previous version of this story incorrectly stated that EAEF previously invested EGP 3 mn in Dawi Clinics.

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