DPI exits Egyptian retailer

Development Partners International (DPI) announced the sale of ADP II’s significant minority stake in B.TECH.

Founded in 1997, B.TECH is the largest integrated omnichannel retailing and consumer finance platform in Egypt, selling consumer electronics and household appliances. DPI invested in the business in 2016 through its second fund, ADP II, partnering with CEO and founder, Dr. Khattab, and his management team to execute an ambitious plan and digital transformation which resulted in sales and profits increasing by 5x and 10x respectively during DPI’s investment period.

Dr. Mahmoud Khattab, B.TECH CEO said, “DPI has been a fantastic partner at each step of our journey, helping us to evolve and scale our business and reinforce our strong position in the market. Since 2016, we have achieved significant milestones, rapidly expanded our ecommerce business, and doubled our store footprint while also enhancing our digital capabilities.”

DPI partner, Sofiane Lahmar commented, “B.TECH’s transformation is a testament to the long-term vision of Dr. Khattab. We continue to share the view that Egypt is a highly attractive investment destination with significant growth opportunities. DPI is proud to have supported Dr Khattab and his team to capture the opportunities in the market and make his vision a reality. DPI has worked closely with the company, helping to unlock value through actively supporting its expansion, and drive positive impact for the communities the business operates in. We are confident that B.TECH is well positioned for the future.”

Financial advisors for the transaction were Arqaam Capital and PwC. White & Case acted as international legal advisors, and Matouk Bassiouny & Hennawy and Zulficar and Partners as local legal advisors.