Whereas Nigeria and Kenya have been on the forefront of African fintech innovation, actions in Egypt are starting to form up properly. Proper now, Egypt is residence to a burgeoning fintech startup ecosystem, and right this moment, one in every of its largest gamers, Paymob introduced that it has accomplished an $18.5 million Collection A spherical.
In July 2020, Paymob raised $3.5 million as its first tranche of Collection A funding. An extra $15 million was raised from the identical buyers led by Dubai-based VC agency International Ventures. Different buyers embrace Egyptian funding fund A15 and Dutch improvement financial institution FMO.
The full elevate of $18.5 million is the most important Collection A spherical in Egypt but and one of many largest fairness rounds in North Africa.
“We are delighted to guide this momentous fintech fundraise within the area. Paymob has an ideal mixture of high-quality expertise, product clients more and more can not do with out, and an impressive administration group, “Basil Moftah, basic accomplice at International Ventures, mentioned of the funding. “Their market alternative can also be large; Egypt’s transformation to a cashless society is being enabled by the distinctive merchandise Paymob has constructed.”
Paymob was based in 2015 by Alain El Hajj, Islam Shawky, and Mostafa El Menessy. The platform helps on-line and offline retailers to simply accept funds from their clients by way of a number of merchandise and options. It gives a fee gateway that retailers can plugin into their websites or cellular utility utilizing its APIs. For offline retailers, Paymob has a POS resolution the place they’ll obtain in-store card funds.
The corporate additionally has a fee hyperlinks function the place retailers share hyperlinks with their clients to obtain funds that are obtained utilizing cellular wallets. And in keeping with the corporate, 85% of cellular wallets transactions carried out in Egypt is processed by its infrastructure. It additionally claims to be the most important fee facilitator within the nation.
Asides from Egypt, Paymob can also be current in Kenya, Pakistan, and Palestine. CEO Shawky says the corporate has plans to increase into extra Sub-Saharan African international locations. Nevertheless, that may come after specializing in the Gulf Cooperation Council (GCC) to realize a big market share.
Regional growth (with an imminent entry into Saudi Arabia this yr) is one in every of Paymob’s goals following this elevate. Per a press release launched by the corporate, it is going to additionally use the investments to increase its service provider community, meet growing demand, and enhance product choices.
The pandemic introduced top-of-the-line alternatives for fintechs everywhere in the world to attain large development. For Paymob, it claims to have grown its month-to-month income over 5x final yr. The corporate additionally recorded a complete fee quantity of greater than $5 billion from over 35,000 native and worldwide retailers like Swvl, LG, Breadfast, and Tradeline.
This development allowed the fintech firm to lift the second tranche of funding after closing simply $3.5 million initially. Shawky informed
MADConsole that the deal materialized after the corporate’s buyers and administration witnessed an “unprecedented development” pushed by the pandemic “along with the brand new initiatives launched by regulators, which inspired them to extend their funding to fulfill our growing demand.
As earlier iterated, fintech is on the rise in Egypt with startups like Moneyfellows, NowPay, Raseedi, Flick offering lending, funds, wealth and private finance administration providers, and so forth.
The Egyptian fintech ecosystem additionally received a serious enhance when incumbent fintech Fawry turned a publicly-traded unicorn for the primary time. Since launching in 2007, Fawry has been the most important on-line fee platform within the nation and gives quite a lot of providers starting from cellular pockets to banking providers. Will Fawry’s longstanding presence pose a problem to Paymob’s quest to develop into a dominant fintech as properly? Shawky doesn’t suppose so.
“Paymob’s main competitor is money. With solely a small proportion of the economic system working in digital kinds, we imagine the chance of really remodeling money into digital is but to be unlocked,” he mentioned.