Local CNC machine manufacturer Simplex is raising a new funding round to bankroll its expansion in Tenth of Ramadan City, which will push its annual production capacity to 3.5k machines, CEO Ahmed Shaaban (LinkedIn) tells EnterpriseAM. The company aims to close the active round by the end of the year to finance the build-out. Simplex now runs one 5k sqm plant and one 10k sqm plant in Tenth of Ramadan City, while a third 20k sqm facility broke ground last week. Current annual production capacity has increased to 1.5k machines, up from 500, and will reach 3.5k once the third facility is built, Shaaban says.
The financing mix: “The financing comes from the previous round, plus we have an ongoing funding round that hasn’t closed yet,” Shaaban says, adding that the company also “secured an angel bridge round of about USD 1.5 mn.” He declined to disclose the target size of the active round.
REFRESHER- An undisclosed Egyptian investor picked up a minority stake in Simplex in October 2024 with an EGP eight-figure transaction, with proceeds earmarked to finish the Tenth of Ramadan factory, fund R&D, and back expansion into Tunisia, Morocco, and Algeria. Qatar was later named as a target market as well.
SOUND SMART- CNC, short for computer numerical control, is a computer-controlled piece of machinery used in industry to cut and shape materials with a very high level of precision and repeatability. It is used to make parts for everything from cars to factory equipment.
Taking business abroad
Looking overseas: “We are currently focused on partnering with an international strategic player outside Egypt, someone with deep industry expertise so we can learn and scale further,” Shaaban tells us. That international search comes after talks with Elsewedy Electric over a domestic stake sale fell through in 2024 over disagreements on the size of the stake.
The CNC manufacturer also inked new partnership and agency agreements in Jordan, Kuwait, and Syria, which will allow distributors there to buy and resell its machines locally, Shaaban says. The release didn’t name either partner or disclose contract terms. The company is also in talks with potential partners in Pakistan, South Africa, and Angola, Shaaban notes, with three to five new markets expected to close before year-end.
Export volume is still a small slice of the business, for now. Simplex ships about 15% of what it makes today, but the company is “heavily focused on exporting,” Shaaban notes. Looking ahead, the target is to “hopefully reach 50% within five years,” he adds.
ICYMI- In January 2025, Simplex signed an MoU with Saudi Arabia’s National Industrial Development Center to build its first Saudi factory, a 20k sqm plant in Riyadh, funded by its Saudi partner. The following month, it confirmed securing USD 13 mn for that project, which began operations in 1Q 2026.
About Simplex
Simplex’s machinery feeds into the supply chains of the country’s biggest industrial companies, serving over 4.5k clients and exporting to 34 countries, Shaaban says. “In furniture manufacturing, we supply Mobilya, In & Out, Ikea, and similar companies,” he says. The company’s reach also extends to home appliances (El Araby, Fresh, Midea, and Kiriazi), the automotive sector (MCV, Volvo, Mercedes, and El Nasr Automotive), infrastructure (Arab Contractors, Elsewedy, and Orascom), and electrical (Elsewedy, ABB, Schneider, and Siemens).
A local manufacturing monopoly: The company designs, assembles, and manufactures CNC machines domestically rather than relying on the import-to-resell model that dominates the market. “There are a few manufacturers, but not for our specific types of machinery, and not at our corporate scale,” Shaaban notes, adding that Simplex is “unfortunately” the only significant player in the market.
