Financing Businesses

Overview

GB Auto has created a full-fledged financial arm that serves its core business while competing with other non-bank financial service providers. At the forefront of this strategy is GB Capital, which is constantly on the lookout for new additions to complement its portfolio. GB Capital oversees the operations of the group’s five financial service providers across all segments.

GB Lease is GB Auto’s first financing venture, established in 2008 to provide finance to GB Auto’s commercial vehicles and corporate fleet clients. GB Lease provides business-to-business financial leasing solutions that are non-exclusive to GB Auto, catering to a diversified client base ranging from top-tier multinationals to local corporations of various scales, as well as small and medium enterprises (SMEs). It is one of the top-tier active players in the market, operating under the auspices of the Egyptian Financial Supervisory Authority (EFSA) and fully complies with all regulations.

Mashroey is GB Auto’s second financing venture. Founded in late 2009, it began operations in March 2010 and offers asset-based microfinance lending to eligible clients. Like GB Lease, the company is now well-developed and growing rapidly across Egypt, with a nationwide network of around 80 branches and units. Mashroey started out selling GB Auto’s Bajaj-branded three-wheelers on credit terms, but now has an extensive product base that extends credit and financing options for tuk-tuks (GB Auto product), motor tricycles (non-GB Auto product), YTO tractors, minivans (GB Auto product), and pre-owned tuk-tuks.

Drive was licensed as a factoring company in 3Q12, and today extends its services to a well-diversified client base, ranging from business-to-business (SMEs) to business-to-consumer (retail), which includes auto loans to end consumers. Drive has grown steadily since its establishment, making remarkable strides in market presence and carving a place for itself in the very competitive automotive financing sector since inception. Drive finances sales of GB Auto’s passenger cars out of the company’s showrooms and also transacts with key independent dealers in the company’s network. Drive is non-exclusive to GB Auto and offers a multitude of financial solutions for various SMEs and consumers. The company fully complies with all regulations and operates under the auspices of the EFSA.

Haram Tourism Transport (HTT, also known as Haram Limousine) operates as a car rental/quasi-operational lease company. It is the premier vehicle fleet leasing company in Egypt, and serves top-tier multinationals, financial institutions, as well as private sector companies, with its average tenor standing at three years. HTT supports its clients by enabling them to focus on their core competencies and strengths while directing scarce funding resources to mainstream operations; leaving vehicle sourcing and management to HTT. The company’s service agreements entail acquisition, registration, and maintenance of the vehicle, in addition to insurance that extends to third-party damage and passengers within the vehicle. Other complementary services include fleet management reports.

Tasaheel is the most recent addition to GB Auto’s portfolio of financing businesses, launched in August 2015 to provide direct microfinance lending to eligible clients, with a specific focus on group lending to women. Through Tasaheel, GB Auto aims to help low-income earners generate higher returns to improve their living standards, which in turn supports overall community development and economic growth. Like Drive and GB Lease, Tasaheel operates under the auspices of the EFSA.