The Board of Directors at Speed Medical has approved the establishment of Speed Finance, a consumer finance company specialised in financing medical and pharmaceutical services.
In a statement to the Egyptian Exchange (EGX), Speed Medical stated that it plans to establish the new company as the first of its kind in Egypt, with a capital of EGP 25m. The capital will be paid within a year, with a 50% contribution from Speed Medical.
The statement indicated that Speed Finance will take advantage of the various medical services provided by Speed Medical and other medical service providers operating in the Egyptian market, subject to obtaining regulatory approvals.
The Board of Directors agreed to sign a Memorandum of Understanding (MoU) with the software company Digital Wellness, which owns the Care Square app. It noted that the application generates actual returns through a unique feature known as Patient Journey, which specialises in digital medical and pharmaceutical services.
This aims to make Speed Medical a major shareholder in Digital Wellness, with a stake of 25.01%, with the company also set to pump EGP 22.5m in cash into the latter within a year.
Speed Medical pointed out that this percentage represents the participation rate, which will be used as an increase in the capital of Digital Wellness, which owns the application.
It will be used in the development of Care Square, as well as its expansions and publicity, to reach an advanced position in this field within two years of its date.
This comes in addition to the integration of services under the Care Square application with the Speed Finance services for financing after the start of its work later this year.
The Board of Directors approved the expansion plan for branches in East Delta, which includes 11 new Speed Lab branches in Sharqeya Governorate.
The company recorded a net profit of EGP 40.92m in the first quarter (Q1) of 2021, compared to EGP 7.17m during the same period last year.