Tanmiya Capital fund has closed a $130 million fund to back established Egyptian businesses, backed by EIB investment, and plans to fund six to eight companies.
The EIB, through its development arm EIB Global, announced a commitment of $37.5 million on October 26. The fund is targeting companies across healthcare, training, fintech, consumer goods, logistics and transport.
Also Read: Pinnacle Launches New VC Fund to Back Saudi Growth Companies
Tanmiya Capital Fund Investment Strategy
This is not an early-stage startup fund. Tanmiya Capital Fund II targets established, high-growth businesses that need substantial capital to expand operations, improve management and compete in larger markets.
According to a report, Tanmiya expects to deploy around $80 million into local mid-market companies over the next two to three years.
EIB Global joins a group of international and Egyptian investors that includes the Egyptian-American Enterprise Fund (EAEF), IFC, EBRD and Egypt’s Micro, Small and Medium Enterprise Development Agency (MSMEDA).
EIB Global and Local Business Growth
The EIB’s involvement also connects the fund to the European Union’s Global Gateway initiative and its broader economic partnership with Egypt. The bank expects the fund’s portfolio companies to create opportunities for commercial links with European businesses, including through purchases of equipment, technology and services.
The final close reportedly occurred in June 2026, while the EIB publicly announced its investment in October. The fund raised $10 million more than its original $120 million target.
Tanmiya plans to build a portfolio of six to eight established businesses. The strategy focuses on companies that have demonstrated growth potential but need more capital and operational support to reach their next stage.
The fund has already backed Egyptian pharmaceutical manufacturer Copad and confectionery company El Abd Patisserie, according to EnterpriseAM. These investments illustrate its focus on established businesses rather than the seed-stage startups typically associated with venture capital.
Go deeper on GCC & Africa tech — $9.99/month.
Deep dives and investor insights the free digest doesn't cover.
Operational Support and Economic Impact
Beyond funding, Tanmiya intends to help portfolio companies strengthen governance, professionalise operations and improve competitiveness. That support can matter for businesses preparing to enter new markets, expand production or build the management structures needed to operate at a larger scale.
The EIB also expects at least 30% of portfolio companies to meet one or more of its criteria for investments supporting gender equality.
Established small and medium-sized businesses can find access to long-term equity capital difficult after outgrowing early financing but before they're positioned to tap public markets. Debt can finance expansion, but it also creates repayment obligations that equity investment does not.
Tanmiya’s fund offers another route. By investing in a limited number of established companies and combining capital with strategic support, the firm aims to help businesses expand while improving their operations and governance.
The planned portfolio of six to eight companies means the fund will be selective. Its impact will depend not just on the fund's size, but on which businesses receive investment, how effectively the capital is deployed, and whether portfolio companies can translate it into sustainable growth and jobs.
The fund is expected to support thousands of jobs across Egypt. That remains an objective rather than a guaranteed outcome, and the results will become clearer as investments mature.
With its $130 million close secured, Tanmiya Capital now faces the challenge of putting the capital to work. Its plan to deploy around $80 million over the next two to three years provides a useful benchmark for tracking progress.
For Egyptian businesses, the important question is which companies will secure funding and whether that capital will help them expand beyond their current scale. For the wider investment market, the fund also raises a broader question: how effectively can development-finance institutions help channel long-term capital into established local businesses?
Tanmiya’s next investments and the growth of its portfolio companies will make it clearer whether the fund can turn its fundraising milestone into lasting business expansion and job creation.
Engagement
