Name: Mohammad Mohamed Abdou Elhabbal

Reg: 22127741
Dr. Walid Eid
Entrepreneurship and new venture management

Analytical Report on Halan's Entrepreneurial Journey

1. Journey and Evolution

 Initial Steps and Key Pivot Points:

Halan was founded in 2017 by Mounir Nakhla and Ahmed Mohsen, initially
offering a ride-hailing service using two- and three-wheelers, designed to
cater to underserved regions of Egypt. The founding vision was clear: to
provide affordable and accessible transportation for communities that were
neglected by traditional transportation networks. However, as the startup
gained traction, it identified a larger gap in Egypt’s financial and logistical
infrastructure.

The company underwent a pivotal transformation around 2020 when it

rebranded to MNT-Halan, shifting focus from purely transportation to a
comprehensive fintech and logistics platform. The decision to diversify into
microfinance, digital payments, e-commerce, and logistics was driven by
the founders’ vision to empower underserved populations economically and
socially. This pivot was pivotal in scaling the business and positioning
MNT-Halan as a key player in Egypt’s growing digital economy.

 Founders' Vision and Scaling:

The founders demonstrated a keen understanding of Egypt’s socio-economic

landscape and its untapped potential. Their early recognition of the
financial inclusion gap led them to introduce microloans and digital wallet
solutions, which expanded Halan's customer base significantly. By
integrating e-commerce and logistics, Halan could create a more robust

1
Name: Mohammad Mohamed Abdou Elhabbal
Reg: 22127741
Dr. Walid Eid
Entrepreneurship and new venture management

platform for small businesses, allowing them to thrive in the digital

economy.

Scaling the business involved attracting substantial investment and iterating

on product offerings. The company’s ability to diversify and maintain
focus on its core mission — improving financial inclusion — was
essential. By 2022, Halan had over 4 million users, marking a significant
milestone in its growth. By 2023, with $200 million in funding, it
reached unicorn status, reflecting its successful scaling strategy.

2. Business Model

Addressing Market Needs:

Halan’s business model is a prime example of how to address multiple gaps in the
market through technology. By focusing on financial inclusion and creating an
ecosystem that incorporates transport, fintech, logistics, and e-commerce,
Halan effectively targeted several underserved segments of the Egyptian
population.

 Fintech Services:

Microloans, nano-financing, and digital wallets are crucial offerings that

target small business owners and individuals who lack access to
traditional banking services. These services are tailored to people who
are often unbanked or underbanked, empowering them to build
businesses or access better financial opportunities.

 E-commerce and Logistics:

2
Name: Mohammad Mohamed Abdou Elhabbal
Reg: 22127741
Dr. Walid Eid
Entrepreneurship and new venture management

By providing delivery solutions for small merchants, Halan opens new sales
channels for businesses that may not have the resources to create their
own logistics infrastructure. This creates a win-win scenario where small
businesses grow, and the platform earns revenue by connecting
consumers and businesses.

 Transportation:

Halan initially focused on affordable ride-hailing for underpenetrated

regions. Although this was a core service early on, it became a means to
facilitate customer acquisition, creating further opportunities to upsell
fintech and logistics services to the same customer base.

Sustainability of the Multi-Sided Platform:

The multi-sided platform approach is sustainable as long as Halan maintains

strong user engagement across its various verticals. The platform’s ability to
cross-sell services to its users, whether it’s providing ride-hailing alongside
microloans or offering logistics solutions to small businesses, creates a high
degree of user lock-in. However, the long-term sustainability will rely on
Halan’s ability to scale infrastructure, improve operational efficiency, and
address customer demands in an evolving market. The platform must also
navigate regulatory and market conditions that may evolve as the digital
economy matures in Egypt.

3. Challenges and Risks

 Regulatory Compliance:

3
Name: Mohammad Mohamed Abdou Elhabbal
Reg: 22127741
Dr. Walid Eid
Entrepreneurship and new venture management

Operating in Egypt’s evolving regulatory landscape posed significant

challenges for Halan, particularly in the fintech space, where
regulations are still developing. Compliance with local laws and
regulations surrounding financial services, consumer protection, and
data privacy required constant adaptation. Halan mitigated this risk by
maintaining close relationships with regulatory bodies and ensuring
compliance with national laws.

Competition:

The competition from both local startups and global players in the fintech
and logistics domains has been fierce. Companies like Swvl and global
ride-hailing giants such as Uber could have stymied Halan’s growth in the
transportation sector. To address this, Halan diversified into new verticals,
allowing it to hedge against competitive threats and capture a broader
market.

Scaling Infrastructure and Customer Trust:

As Halan expanded, maintaining service quality and building customer trust in

new offerings was challenging. To scale, the company needed to build robust
technological infrastructure and handle the complexities of managing vast
amounts of data while ensuring that customer service remained strong.
Halan’s ability to maintain trust amid rapid expansion was key to its success.

Economic Uncertainty:

4
Name: Mohammad Mohamed Abdou Elhabbal
Reg: 22127741
Dr. Walid Eid
Entrepreneurship and new venture management

Economic instability in Egypt, including currency devaluation and inflation,

posed financial risks. Halan needed to balance its pricing model to account
for inflationary pressures while continuing to provide affordable services to
its target audience. The company addressed this challenge by offering
flexible payment structures and by continually monitoring economic trends
to adapt its strategy.

Future Risks:

As Halan continues to expand, risks related to international market entry, local

competition, and potential regulatory changes in new markets may present
obstacles. Maintaining user trust, keeping operational costs in check, and
complying with regulations in diverse regions will be crucial to sustaining
growth.

4. Future Outlook

Strategies for Continued Growth:

To maintain growth, Halan should focus on several strategies:

 Innovation in Financial Products:

Expanding its range of financial products, such as insurance, savings, and

wealth management services, could further drive engagement and
customer retention. Leveraging artificial intelligence (AI) to offer
personalized financial advice could also add value.

 Regional Expansion:

5
Name: Mohammad Mohamed Abdou Elhabbal
Reg: 22127741
Dr. Walid Eid
Entrepreneurship and new venture management

Halan could explore expanding into other MENA (Middle East and North
Africa) countries that have similar economic profiles to Egypt. Countries
with large unbanked populations, such as Sudan or Iraq, may present new
opportunities.

 Partnerships and Acquisitions:

To scale more effectively, Halan could partner with international fintech

companies or acquire smaller regional competitors to broaden its service
offerings and accelerate expansion.

New Markets and Services:

Apart from regional expansion, Halan could explore the following new services:

 Insurance:

Offering micro-insurance products for low-income individuals could further

promote financial inclusion.

 HealthTech:

Expanding into health services, such as telemedicine or healthcare loans,

could open new avenues for growth.

5. Lessons Learned

Key Entrepreneurial Lessons:

1. Adaptability:

6
Name: Mohammad Mohamed Abdou Elhabbal
Reg: 22127741
Dr. Walid Eid
Entrepreneurship and new venture management

Halan’s success showcases the importance of pivoting when necessary. The

founders' ability to transition from a transportation-focused company to a
fintech and logistics platform allowed Halan to capitalize on multiple
growth areas.

2. Understanding Market Needs:

Halan’s deep understanding of the financial exclusion problem in Egypt

allowed them to tailor services to meet real, unmet needs.

3. Diversification:

By diversifying into multiple verticals, Halan minimized risks and created a

self-reinforcing business ecosystem, which helped mitigate challenges in
any single area.

4. Long-Term Vision:

The founders’ foresight in addressing financial inclusion and building a

broad platform allowed them to scale sustainably in a highly fragmented
market.

6. Discussion Questions

1. Adaptability and Innovation:

Adaptability was critical in Halan’s success, particularly in pivoting from

ride-hailing to broader fintech and logistics services. Innovation played a
crucial role by introducing digital wallets, microloans, and e-commerce
solutions tailored to Egypt’s underserved population.

2. Overcoming Economic and Regulatory Challenges:

7
Name: Mohammad Mohamed Abdou Elhabbal
Reg: 22127741
Dr. Walid Eid
Entrepreneurship and new venture management

Halan can navigate economic and regulatory challenges in Egypt by

maintaining strong relationships with regulators, building flexibility into
its financial products, and focusing on digital solutions that can adapt to
changing conditions.

3. Leveraging Unicorn Status for Expansion:

To expand into other emerging markets, Halan can leverage its unicorn
status to attract international investors, gain credibility, and expand its brand
presence. It can also form strategic partnerships with local players in target
markets to accelerate adoption.

By following these strategies, Halan can continue to lead the charge in Egypt’s
evolving digital economy while expanding its footprint in the region.