While Nigeria and Kenya have led African fintech innovation, activities in Egypt are beginning to take shape nice. There is currently a growing fintech startup ecosystem in Egypt, and today, one of its biggest players, Paymob announced that it has completed a $ 18.5 million Serie A round.
In July 2020, Paymob raised $ 3.5 million as the first tranche of the Series A investment. An additionally $ 15 million was raised the same investors led by Dubai-based VC Global Ventures. Other investors include the Egyptian investment fund A15 and the Dutch development bank FMO.
The total increase of $ 18.5 million is the largest round of Serie A in Egypt and one of the largest stocks in North Africa.
“We are delighted to lead this significant collection of fintech in the region. Paymob has the perfect combination of high quality technology and customer products more and more can’t do without an outstanding management team, “said Basil Moftah, general partner at Global Ventures, about the investment. “Their market opportunity is also huge; The transformation of Egypt into a cashless society is made possible by the unique products that Paymob has built. ”
Paymob was established in 2015. Alain El Haj, Islam Shawky and Mostafa El Menessy. The platform helps online and offline merchants to accept payments from their customers through several products and solutions. It offers a payment gateway that merchants can connect to their websites or mobile apps using their APIs. For offline merchants, Paymob has a POS solution where they can receive card payments in the store.
The company also has a payment link feature where merchants share links with their customers to receive payments were received using mobile wallets. And according to the company, 85% of mobile wallet transactions are done in Egypt processes its infrastructure. He also claims to be the largest payment intermediary in the country.
In addition to Egypt, Paymob is also present in Kenya, Pakistan and Palestine. CEO Shawky says the company plans to expand to more countries in sub-Saharan Africa. However, which will follow the focus on the Gulf Cooperation Council (GCC) in order to gain a large market share.
Regional expansion (with a recent entry into Saudi Arabia this year) is one of Paymob’s goals after this raise. According to a statement released by the company, it will also use the investment to expand its sales network, meet growing demand and improve product offerings..
The pandemic presented one of the best opportunities for fintechs around the world to achieve massive growth. He claims that Paymob increased its monthly income more than five times last year. The company also recorded total payments in excess of $ 5 billion from over 35,000 domestic and international retailers such as Swvl, LG, Breadfast and Tradeline.
This growth enabled the fintech company to raise the second tranche of investment after the closure only $ 3.5 million at the beginning. Shawky told TechCrunch that the deal was accomplished after the company’s investment and management testified “unprecedented” pandemic-driven “growth” in addition to new initiatives launched by regulators that have encouraged them to increase their investment to meet our growing demand.
As repeated earlier, fintech is on the rise in Egypt, and startups like Moneyfellows, NowPay, Raseedi, Flick provide lending, payment, wealth and personal finance management services, and more..
Egypt’s fintech ecosystem also got a big boost when the current fintech Fawry became a public unicorn for the first time. Since launching in 2007, Fawry is the largest online payment platform in the country and offers a variety of services, from mobile wallet to banking. Will Fawry’s long-standing presence poses a challenge to Paymob’s quest to become the dominant fintech? Shawky doesn’t think so.
“Paymob ‘s main competitor is cash. With only a small percentage of the economy operating in digital forms, we believe opportunity for indeed the transformation of cash into digital is yet to be done be unlocked,” he said.
That said, a raise follows the launch of two funds – Algebra Ventures and Sawari Ventures in what can be described as an exciting week for startups and VCs in the country.