Egyptian fintech Paymob bags large Series A round

 Egyptian fintech Paymob bags large Series A round

(From left) Paymob founders Mostafa El Menessy, Islam Shawky and Alain El Hajj

Paymob, an Egyptian digital payments provider, has raised the largest-ever Series A funding by a startup in the country and one of the largest equity financing rounds for a fintech company in North Africa.

The company said Thursday it has raised $15 million of fresh money from existing investors in the second tranche of its Series A fundraising activity.

The round was led by Global Ventures, a UAE-based venture capital firm that focuses on the Middle East and North Africa region. Egyptian tech investment fund A15 and Dutch development financial institution FMO pitched in, too.

The second tranche follows a first tranche of $3.5 million, raised in July 2020, when Global Ventures and FMO led the round along with a follow-on investment by A15.

The Capital Quest had reported earlier this year that FMO committed fresh money to Paymob. It had said it would reinvest $3 million in Paymob.

Paymob’s large funding comes shortly after Egyptian fintech Dayra raised a pre-seed round involving $3 million in debt and equity, one of the largest such rounds in the region, last month.

Paymob said it will use the fresh proceeds to expand its merchant network, enhance its product suite and fuel its regional expansion efforts. In particular, it will accelerate its expansion in Saudi Arabia.

“This latest capital raise will accelerate our progress to reducing the digital payments bottleneck,” Paymob CEO and co-founder Islam Shawky said, adding that all its existing investors had increased their stake in the company.

Shawky founded Paymob along with Alain El Hajj and Mostafa El Menessy in 2015.

The company claims its mobile wallet infrastructure processes over 85% of transactions throughout the Egyptian market and serves merchants across five countries including Kenya, Pakistan and Palestine. It is the largest payment facilitator in Egypt and is the only Egyptian fintech to expand beyond its home market.

Paymob said that its monthly revenue grew more than fivefold in 2020 and that it processes annual total payment volume of over $5 billion.

The company says its technology is used by over 35,000 Egyptian and global merchants, such as Swvl, ElGouna, Tradeline, LG, Samsonite, Aeropostale, Befit, Breadfast, Gourmet, and the American University of Cairo.

Vivek Sinha

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