While Nigeria and Kenya were at the forefront of African fintech innovation, activities in Egypt began to take shape nicely. Currently, Egypt is home to a thriving fintech startup ecosystem, and today, one of its biggest players is. Paymob She announced that she has completed a $ 18.5 million tour of Series A..
In July 2020 Paymob raised $ 3.5 million first tranche From the investment in Series A. that additional $ 15 million upload From the same investors led by Dubai-based 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 first-series round in Egypt to date and one of the largest stocktakes in North Africa.
“we Are happy To lead the region’s massive financial fundraising. Paymob has the perfect blend of quality technology and product customers increasingly Basil Moftah, General Partner at Global Ventures, said of the investment. “Their market opportunity is also enormous; Egypt’s transformation into a cashless society is enabled by the unique products created by Paymob. ”
Paymob was established 2015 for Aline Hajj, Islam Shawky and Mustafa El Mounisi. The platform helps both online and offline merchants to accept payments from their customers across a multitude of products and solutions. It provides a payment gateway that merchants can enter into their websites or mobile apps using their APIs. For offline merchants, Paymob has a POS solution where they can receive card payments in store.
The company also has a payment links feature where merchants share links with their customers to receive payments that Received Using mobile phone wallets. According to the company, 85% of mobile wallet transactions take place in Egypt It is processed by Its infrastructure. It also claims to be the largest payment facilitator in the country.
Besides Egypt, Paymob is also present in Kenya, Pakistan and Palestine. CEO Shawky says the company has plans to expand into more sub-Saharan Africa. HoweverThis comes after focusing on the countries of the Gulf Cooperation Council to obtain a large market share.
Regional expansion (with an imminent entry into Saudi Arabia this year) is one of Paymob’s goals after this increase. According to a statement from the company, it will also use the investments to expand its network of merchants, meet growing demand, and improve product offerings.
The pandemic presented one of the best opportunities for fintech companies around the world to achieve explosive growth. As for Paymob, it claims to have grown its monthly revenue more than 5 times last year. The company also recorded a total payment volume in excess of $ 5 billion from more than 35,000 local and international merchants such as Swvl, LG, Breadfast and Tradeline..
This growth allowed fintech to raise the second tranche of investment after the shutdown Just $ 3.5 million Starting. Shawky told TechCrunch that the deal came after the company’s investors and management Witness “Unprecedented growth” driven by the epidemic “in addition to new initiatives launched by the regulators, which encouraged them to increase their investment to meet our growing demand..
As mentioned earlier, fintech is on the rise in Egypt with startups like Moneyfellows, NowPay, Raseedi and Flick providing lending services, payments, wealth, personal finance management, etc..
The Egyptian fintech ecosystem also got a big boost when the current Fintech Fawry became a unicorn publicly traded company for the first time.. Since its launch in 2007, Fawry has become the largest online payment platform in the country and offers a variety of services ranging from mobile wallet to banking services.. Will Fawry’s long presence challenges Paymob’s quest to become a dominant fintech company as well? Shawky doesn’t think so.
“ Cash is Paymob’s main competitor. With only a small percentage of the economy operating in digital forms, we believe Chance Oh really Digitalization of cash has not yet been completed To be unlocked,” He said.