The Cairo-born digital payment provider, already considered a coveted name in the FinTech world, will utilise the recent investment to grow its merchant network, empower SMEs and accelerate its regional expansion.
Egyptian digital finance solutions startup Paymob has raised a $3.5 million investment, led by Global Ventures and the Dutch Entrepreneurial Development Bank FMO, and a follow-on investment by MENA's leading tech investment fund A15. The FinTech company is leveraging the new capital to expand its network, advance their product development and to broaden their current regional footprint.
According to Paymob, the startup is the first Egyptian FinTech venture to go well beyond the country’s borders and operate outside of its main market. The company’s established mobile wallet infrastructure currently serves merchants across several markets, including Kenya, Pakistan and Palestine. Moreover, Paymob processes more than 85% of mobile wallet transactions in Egypt; ranking it the first mobile wallet payment service in MENA.
FinTech has already established its reign as the top sector in terms of deals in H1 2020, and with users in Egypt now embracing digital solutions when it comes to finances, the startup is witnessing its major boom. “In a world where consumers are currently adopting digital products in all aspects of their lives, now is the time to invest in Paymob products to empower the digital economy,” says Islam Shawky, Paymob’s Co-founder and CEO. “These unprecedented times has proven the need for a robust digital payments infrastructure to serve the rising demand from all business types and sizes during the pandemic which resulted in a drastic increase of 450% increase in merchant on-boarding rate since the beginning of Covid-19.”
In a statement announcing the investment, Paymob extended their gratitude and paid tribute to the late Egyptian business leader and entrepreneur, Khaled Bichara. The founders attribute their success to his mentorship and guidance, which catapulted the startup from a case study into an innovative payment solution provider, operating region-wide. “A relationship that once started as a case study in university that inspired us to pursue our own adventure to a business partner to a friend ending up with more of a family,” sayShawky and co-founder Alain El-Hajj. “Khaled still is our role model and an icon to us and many generations to come. Paymob is where it is today due his teachings, and we are lucky and honored to have had his trust and support. Today we dedicate this milestone to him.”
In addition to fortifying their own portfolio through this recent investment, Paymob is also striving to use its platform to empower SMEs with streamlined and accessible digital payment solutions. The initiative is also co-chaired by the Central Bank of Egypt (CBE), which has been spearheading a nationwide digital financial inclusion movement. Earlier this March, the CBE had ordered all banks to establish financial inclusion departments and to present their strategies by May 2020.
“Since our initial investment in Paymob, the team has made significant strides in addressing the major issue of financial inclusion in our region," added Karim Beshara, Chairman of A15. "It is rewarding to be involved in a business that facilitates the way people transact every day and maximizes the productivity of millions of people. We are proud to support a young and passionate team in their quest to revolutionize the development and advancement of financial systems in Egypt, our region and beyond.”
Photo credit: MO4 Network
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