• Home
• Fin tech

Abdel Azim Othman, co-founder of Nawy, said the company’s decision to raise external funding was linked to its shift from real estate marketing and brokerage into a more diversified business model. He said Nawy initially had no need for outside capital, but later expansion opportunities required additional funding.

Nawy grew through self-funding

Speaking during a panel at the second day of the Enpact Summit, held to launch the annual report on Egypt’s entrepreneurship sector in El Gouna, Othman said Nawy began with a different model, focusing on real estate marketing and brokerage before expanding into more services linked to the property market.

He said the company operated without external funding during its first three years, using revenues and profits to finance operations and expansion. Nawy recorded annual growth of between 50% and 60%, making outside investment unnecessary.

New opportunities changed the funding decision

Othman said the company’s approach changed as new areas emerged, noting that some opportunities could not have been explored or expanded into at the required pace without additional capital. Funding also became more important as Nawy entered activities requiring licenses and specified capital.

He stressed that fundraising was not an objective in itself, but a response to investment and expansion opportunities. If Nawy could have implemented its plans using its own resources, he said, there would have been no reason to give up part of its ownership.

Choosing the right investor matters

Othman said raising capital is not only about money, but also about choosing an investor capable of adding value, advancing the company’s vision and building a strong business. Founders should ask whether they need the funds and whether the investor adds value.

Giving up part of a company’s ownership for funding that adds no meaningful value could weaken the founder’s stake without a proportional benefit. Investors with different expertise can open new areas and support better decisions.

Funding as a tool for faster expansion

Othman said the funding enabled Nawy to enter new areas, expand its home-schooling activity and acquire a company in the UAE, steps that would have been more difficult using internal resources alone.

He said expansion requires financial capacity to act at the right time. Nawy’s experience shows that funding should be timed around actual business needs and growth opportunities.

Othman stressed that self-funded growth can work when companies achieve growth from their own resources. It changes when the company enters new sectors or undertakes expansion or acquisitions beyond internal cash flows. Funding should accelerate growth, not replace a viable model. Capital is most useful when it creates additional value and measurable growth.