Lebanese business development organization Berytech has made a $5 million equity investment into financial software firm Capital Banking Solutions, indicating a continued interest among regional investors towards fintech.
It made the investment through its Berytech Fund II, a $51 million venture capital fund backed by a number of Lebanese banks.
Headquartered in New York, but with offices in Beirut and Dubai, Capital Banking Solutions is an SME providing software for retail, corporate and private banks in Europe, Africa, the Middle East and the Americas, according to its website. The firm reports it has clients such as Lebanon’s Bank Audi, Al-Khaliji Bank in the UAE and the Bank of Africa.
The investment into Capital Banking Solutions is the largest amount of funding dolled out by the Berytech Fund II to date, according to a post from the organization’s Twitter account. The Berytech Fund II, which focuses on startups and SMEs with Lebanese ties, is one of three funds Berytech operates. The organization also provides a number of services to entrepreneurs, such as incubation programs, training workshops and office space.
Berytech’s backing of Capital Banking Solutions follows several other deals in the sector made by regional investors in the last 12 months. Last month, Abu Dhabi-based alternative asset manager Gulf Capital acquired a strategic stake in Geidea, a provider of electronic payment solutions in Saudi Arabia. Gulf Capital did not disclose the exact size of the stake, but revealed the value of the deal exceeded $267 million. Meanwhile, UAE-based peer-to-peer lending platform Beehive raised a $5 million series A round in late 2017 .
Support organizations and accelerators targeting fintech companies are also becoming more commonplace in the Middle East and North Africa, as regional countries vie to become industry hubs.
See Forbes Middle East’s complete coverage on fintech here.