Paymob, Egypt’s market-leading omni-channel merchant financial services platform, today announced it has raised US$50 million in Series B funding. The company will use the proceeds to expand its product line, consolidate its market leadership in Egypt and open new markets in the Middle East, Africa, and the Middle East.
The round was led by Clay Point, PayPal Ventures, Kora Capital and PayPal Ventures. Helios Digital Ventures and British International Investment were also new participants. All existing investors, such as A15, FMO or Global Ventures, participated.
This financing round, the largest ever for fintech Series B in Egypt brings Paymob’s total funding to more than US$68.5million. It also comes at an important time in the region’s digital transformation.
Paymob creates an omnichannel payment infrastructure which allows businesses to accept online and in-store digital payments. This will allow them to have better access to financial services. Paymob’s gateway has the largest number of payment methods in the Egyptian market; in addition to conventional bank cards, Paymob added new payment methods such as mobile wallets, QR payments, bank cards’ installments, Buy-Now Pay-Later, and consumer finance payment options to support merchants in increasing their volume of transactions and growing revenues. Recently, Paymob partnered with Mastercard to introduce Tap-on-Phone in Egypt – the first of its kind in the country and which will start to replace traditional point of sale devices. Paymob will launch cards for merchants in order to facilitate B2B transactions. It also plans to provide tools that merchants can use to manage and grow their businesses.
This unique proposition has enabled Paymob to attract numerous international players such as Vodafone, LG, Virgin, Chalhoub Group, and Decathlon that have turned to Paymob’s digital payment products in addition to fast-growing companies such as Swvl, Breadfast and Homzmart that are relying on Paymob to power their payment infrastructure to enhance customer experience and increase conversion at checkout.
This round comes after strong growth on Paymob’s platform in 2021. As of December 20, 2021, the number of merchants grew 4x year-on–year. Paymob has onboarded more than 100,00 merchants within two-and-half years, as part of its plan for reaching 1 million SMEs in the region.
“We are thrilled to complete this significant fundraising with the support of such renowned international investors including, PayPal Ventures, the venture capital arm of a global pioneer in the digital payment space. It is a major endorsement of the strategy we have implemented to date and the scale of the opportunities we can harness.” said Islam Shawky, Paymob’s Co-founder, and CEO. He added that “Central Bank of Egypt initiatives that are continuously being introduced in the market to support fintech companies were key to Paymob’s growth. The Central Bank has created a regulatory framework to help fintech flourish and participate in making Egypt’s digital financial inclusion ambitions a reality.”
Paymob announced recently its market entry in Pakistan. Pakistan is home to over 220 million people and 4 million SMEs. Paymob plans to launch its operations within 24 months and onboard more than 100,000 merchants. Additional markets should follow in North Africa and the GCC.
“Paymob shares our mission and ambition of advancing digital payments adoption – it has made impressive strides in supporting the growth and success of underserved SMBs,” said Ashish Aggarwal, Director, PayPal Ventures. “We’re honored to be investing at a critical point in their journey, as Paymob scales game-changing solutions to bridge the fintech gap for businesses across the Middle East and Africa.”
“We are excited to partner with Paymob as they innovate at scale in the offline merchant acquiring and online payment gateway space,” Nitin Saigal, founder, Kora Management “The Paymob team is leveraging key structural changes taking place across Egypt and the Middle East, as these economies evolve from being primarily cash-led to a digital heavy mode of transacting. We look forward to the road ahead.”