2014 sees significant investment, acquisitions in mobile phone sector

It seems that 2014 was the year of investment in mobile applications: the sector witnessed significant investments as well as a number of mobile application acquisitions, most notably Facebook’s acquisition of WhatsApp. More recently, Truecaller was purchased in an investment worth $60m.

Investments injected into the telecommunications and IT sector will be directed toward mobile applications during the coming phase, according Yehia Thawrat, CEO of Link Egypt. Thawrat referenced growth rates for smart phone usage and a subsequent increase in mobile application usage which will create a broad customer base during a short time if the application satisfies the clients’ needs. WhatsApp serves as an example of this phenomenon, as it has greatly facilitated communication among users.

The number of users and their usage rates are the main determinants for attracting investments, according to Thawrat. The higher the usage rates and the number of customers, the more the market value of the application increases.

Sawari Ventures Chairman Ahmed el-Alfi agrees with Thawrat’s opinion, noting that the majority of investment funds currently concentrate on mobile application as they represent a leading source of growth in light of increasing numbers of smart-phone users and a constant need for applications that meet their needs. He added that the Egyptian market is one of the promising in this respect, as smart-phones do not account for more than 30% of total mobile users.