OUR FOUNDER OF THE WEEK- Every Tuesday, Founder of the Week looks at how a successful member of Egypt’s startup community got their big break, asks about their experiences running a business, and gets their advice for budding entrepreneurs. Speaking to us this week is Amr Aboelazm (LinkedIn), co-founder and CEO of Erada Microfinance.

My name is Amr Aboelazm and I am the co-founder and CEO of Erada Microfinance. I consider myself an entrepreneur, and I've been working in finance all my life. I started out as a commercial banker, then I was a development finance banker, then a microfinance and SME banker. I managed to launch four startups throughout my career: three focused on microfinance and SME lending, and one focused on fintech and digital finance — as well as a few other investments. I also run a small fintech investment fund, and I work closely with entrepreneurs as a mentor and investor.

I studied at the American University in Cairo (AUC), where I got a bachelor’s degree in economics and a Master of Arts with a concentration in professional development. My thesis focused on commercializing microfinance and turning it into a profitable business that benefits the community, and I believe I applied that principle by founding three successful companies. My AUC experience was rewarding both academically and socially. Economics gave me a macro view of life, while my thesis deepened my love for the business.

Erada Microfinance is a joint venture between e& (Etisalat), the Sovereign Fund of Egypt – through its Digital Transformation Fund – and Amr Aboelazm. We’re regulated by the Financial Regulatory Authority (FRA) and in just two and a half years, we’ve disbursed over EGP 2.5 bn in loans to more than 70k clients. Our aim is to provide innovative financial services to low and middle income individuals through the utilization of technology. Half of our clients are women, 65% are between 21 and 40 years old, and 50% are in Upper Egypt. We became profitable in less than two years despite launching in 2022 at the peak of Egypt’s macroeconomic difficulties.

Erada now has 100 branches across more than 20 governorates. Our team – which has an average age of 30, half of whom are women – was central to navigating inflation, interest rate hikes, and currency challenges. The key was flexibility and constant problem-solving: staying close to customers, adapting quickly, and constantly solving problems as they arise. We also expanded our offerings, like launching merchant and last-mile delivery financing through partnerships with companies like Bosta, Simplex, and Sittin Group. In under three years, we managed to secure lending, Islamic finance, SME, and microfinance licenses. And with e& as a partner, we are also able to expand in not just investment, but also telecom and tech capabilities.

I started my career at CIB. I spent three and a half years there, and it remains my favorite bank. It shaped my analytical and technical skills as I was mentored by some of the industry’s greatest minds. After that I launched my first startup following the model of group lending, launched with a group of friends, Citadel Capital (now Qalaa Holdings), and other private investors. Back then, the market was easier, and we were more risk-tolerant. Today’s challenges are different, but being bold, strong, and grounded remains a constant.

What’s unique about Erada is that we’ve embedded technology into every part of the customer journey, from securing the customer to the services we provide, such as microinsurance, protection schemes for the family, and different products for different segments.

Success comes in stages. It starts with sustainability and having the right team; it’s not only about making money. There’s no limit to success, as there is always more to reach for and achieve. Personally, I think real success is when the company runs efficiently through my team, with less input from me — just vision and direction. We aim to be Egypt’s top provider of digital financial solutions. We want to offer a one-stop shop for credit and asset-based products, expand our portfolio to mns of clients, and use AI and machine learning wherever suitable. I believe this is an achievable five-year goal.

I believe non-banking financial institutions should play a bigger role in financial inclusion, especially through deposit-taking and saving solutions for low- and middle-income groups. Many of the 4 mn microfinance clients in Egypt are unbanked and need innovative saving tools. This would reduce costs and increase access to credit. Digitalization and fintech growth are also essential. The FRA is supportive, and Egypt has strong talent and a conducive environment. With e& and the Sovereign Fund, we’re advancing efficiently — especially through the Digital Transformation Fund, which was created for this purpose.

We still have a long way to go compared to other countries’ fintech ecosystems. We're catching up fast, as we’ve seen that progress in the past five years has been massive. Egypt has the spirit, youth, and resilience to advance. I’ve seen it firsthand at some fintechs like El Gam’eya and among my own staff at Erada. These young professionals got us where we are today.

The most rewarding aspect for me is improving livelihoods. While profitability is important, bettering the lives of our clients is an essential part of our business. Half of our clients are women, many of them the breadwinners, so helping them reach their entrepreneurial goals is a very rewarding feeling. Additionally, we deliver 12 of the 17 SDGs through our core business without intentionally focusing on CSR, including access to finance, women’s empowerment, job creation, poverty reduction, and better education and health outcomes.

External shocks are the downsides. Factors like interest rate hikes, FX shifts, and low demand are difficult to navigate. The past three years, especially 2023, were extremely tough on business, maybe even harder than the two revolutions I witnessed. But I am proud of our team and shareholders, and we are optimistic about the economic changes that we are seeing.

Work-life balance is hard to maintain, but my motto is to always put family first. While dedication to work is very important, prioritizing your family and your health is essential, and I learned that the hard way. Now that my kids are all grown up, it’s easier to manage.

One book that helps me is The Secret by Rhonda Byrne. It is a book of optimism, positive energy, and acceptance. I believe in karma, a common theme across all belief systems, and that good energy matters. The Secret is simple and straightforward, but extremely powerful, and I return to it often.

I love restoring classic cars. If I were not an entrepreneur, I would have a classic car garage where I would buy, restore, and sell classic cars; it’s my favorite hobby. I’m very content around these beautiful machines and I could spend all day with them.

If I could give any advice to my younger self it would be, “don't think you can do everything.” It is normal to face trouble and challenges as you go, so don’t overwhelm yourself and think that you need to overwork yourself to fix everything. I would give the same advice to young entrepreneurs starting today, but I would also urge them to focus on cost management and avoid overspending.