While Nigeria and Kenya have been at the forefront of African fintech innovation, activities in Egypt have begun to take shape properly. Right now, Egypt is home to a booming fintech startup ecosystem, and today, one of its biggest players, Paymob, announced that it had completed a $ 18.5 million series..
In July 2020, Paymob raised $ 3.5 million as its first tranche of Series A investments. One Apart from $ 15 million was raised From the same investors led by Dubai-based VC firm Global Ventures. Other investors include the Egyptian investment fund A15 and Dutch development bank FMO.
The total amount of $ 18.5 million is the largest Series A round ever in Egypt and the largest equity round in North Africa.
“We Are pleased In the region to lead this transient fintech fund. Paymob has high quality technology, an ideal combination of product customers with speed Can’t do the investment without Global Ventures’ general partner, Basil Moffta, and an excellent management team. “Their market opportunity is also huge; Unique products manufactured by Paymob are enabling Egypt to transform into a cashless society. ”
Paymob Was established In 2015 by Alain El Hajj, Islam Shaki and Mustafa El Meneci. The platform helps online and offline merchants accept payments from their customers through multiple products and solutions.. It provides a payment gateway that merchants can plug into their sites or mobile applications using their APIs. For offline merchants, Paymob has a POS solution where they can receive in-store card payments..
The company also has a payment link facility where merchants share links with their customers to receive payments. Are obtained Use Mobile Wallet. And according to the company, 85% of mobile wallet transactions were done in Egypt Is processed by Its basic structure. It also claims to be the largest payment facilitator in the country.
In addition to Egypt, Pemmob, Kenya, Pakistan and Palestine are also present. CEO Shockey says the company plans to expand to more sub-Saharan African countries. However, That will come after focusing on the Gulf Cooperation Council (GCC) to gain a larger market share.
Regional expansion (with an imminent entry into Saudi Arabia this year) is one of Paymob’s objectives after this mobilization. According to a statement issued by the company, it will use the investment to expand its merchant network, meet growing demand and improve product offerings.
The epidemic presents one of the best opportunities for fintech worldwide to achieve large-scale development. For Paymob, it claims to have a monthly income of more than 5x the previous year. The company also paid more than $ 5 billion to more than 35,000 local and international merchants such as Swavel, LG, Breadfast and TradeLine..
This increase allowed the fintech company to raise a second tranche of investment after its closure In college $ 3.5 million In the beginning. Shockey told ClearTips that the deal came after the company’s investors and management saw In addition to new initiatives initiated by regulators, driven by an “unprecedented growth” epidemic, which encouraged them to increase their investment to meet our growing demand..
As previously stated, fintech is growing in Egypt with startups such as lending, payments, money and personal finance management services such as Moneyfellow, Noupe, Rasedi, Flick..
Egypt’s fintech ecosystem also gained momentum when fintech favorites became the first publicly traded unicorn.. Since its launch in 2007, Favari is the largest online payment platform in the country and offers a wide range of services ranging from mobile wallet service.. Will Fourie’s long-time presence challenged Pemob’s quest to become a major fintechThe Shockey does not think so.
“Paymob’s major rival is Cash. With only a small percentage of the economy operating in digital forms, we believe the opportunity to in true sense Converting Cash to Digital Be open,” They said.
He said increased In what can be described as an exciting week for startups and VCs in the country – Algebra Ventures and Savory Ventures of the two funds..