Paymob, a MENA focused FinTech startup that builds infrastructure for the digital economy, has raised $50M in Series B funding. It is aimed at empowering the masses with better access to finance by enabling businesses to accept payments, make payments, manage their finances, and grow their business.
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Egyptian FinTech Paymob raised $50M in Series B round led by PayPal Ventures, Kora Capital, and Clay Point. The round also saw participation from Helios Digital Ventures, British International Investment, and Nclude, along with existing investors A15, FMO, and Global Ventures. The round brings the total funding of Paymob to over $68.5M.
Paymob builds an omni-channel payment infrastructure to enable businesses to accept digital payments both online and in-store in addition to giving them better access to financial services. Paymob offers various payment methods including conventional bank cards, 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 as a POS solution.
FinTech was the industry of choice in the MENA region in Q1’22 and Egypt was no different. As recorded in our Egypt Q1 2022 Venture Investment Report, FinTech was able to rise 3 ranks to become this quarter’s most funded sector, accounting for 44% of all capital invested in the first quarter of the year. This has been reflective of the initiatives taken by the government to particularly propel the FinTech sector in the country. The lion’s share of investment was recorded by financial super app Khazna’s $38M Series A. A major theme for FinTech disruption this year and the past year too has been empowering the the under and unbanked by allowing access to payment transactions, and credit and investment opportunities with sizable investments in startups like FinTech and customer-engaging finance pioneer Lucky ($25M) exploring the world of cashback and credit offers to empower a larger segment of the population with easy and consumable access to credit, and digital investment platform Thndr ($20M).
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The Central Bank of Egypt has been introducing initiatives to support FinTech in the country and has also devised a regulatory framework aimed at aiding financial inclusion. Islam Shawky, Paymob’s Co-founder, and CEO added that “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. 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 recently entered the Pakistani market and is planning to expand to additional markets in the GCC and North Africa. “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.”
Nitin Saigal, Founder, Kora Management commented on the investment, “We are excited to partner with Paymob as they innovate at scale in the offline merchant acquiring and online payment gateway space. 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.”
The proceeds from the funding will be used to turbocharge the company by expanding its product range, steadying its presence further in the Egyptian market, and expanding into new markets across the Middle East and Africa region. Paymob also plans to launch cards for its merchants to enable B2B transactions and build tools for them to better manage and grow their business.
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