Cairo-based fintech Paymob has closed $18.5 million in a Series A round led by Global Ventures, it announced today. The round includes $15 million in fresh capital and $3.5 million that came as its first tranche in July 2020. A15 and FMO, the Dutch entrepreneurial development bank, also participated in the deal. It is the largest-ever Series A raised by a fintech in Egypt.
The startup different products and APIs, enabling online and offline businesses to accept and send payments. The merchants can easily integrate Paymob’s payments APIs in their websites or mobile apps to accept payments from their customers using different payment methods including cards, mobile wallets, and cash on delivery.
In a statement, it said that the revenue for its payment acceptance business grew over 5x in 2020, with its technology now being used by over 35,000 local and global merchants including Swvl, LG, Samsonite, and the American University in Cairo. The startup claims to have processed payments worth over $5 billion to date.
Paymob also offers white-label mobile wallet solutions, helping businesses build a digital wallet into their apps, using its technology. The startup said that its mobile wallets infrastructure processes over 85 percent market share of transactions in the Egyptian market. The solution also serves merchants across international markets like Kenya, Pakistan, and Palestine.
With the fresh capital, the company aims to accelerate its expansion to Saudi and other regional markets this year. It will also use the funds to expand its merchant network and further enhance the suite of products.
Islam Shawky, the co-founder and CEO of Paymob, said, “We couldn’t be more excited for Paymob’s next phase of growth; the market opportunity in the region is unprecedented. The large digital payments gap still exists and we are delighted to be working with progressive-thinking regulators to address this.”
“This latest capital raise will accelerate our progress to reducing the digital payments bottleneck. All our existing investors have increased their holdings, and we thank them both for their support and the confidence they have in our business model and track record of execution,” he added.
Basil Moftah, General Partner of Global Ventures, said, “We are delighted to lead this momentous fintech fundraise in the region. Paymob has a perfect combination of a high-quality technology, a product customers increasingly cannot do without, and an outstanding management team. Their market opportunity is also huge; Egypt’s transformation to a cashless society is being enabled by the unique products Paymob has built. We look forward to continuing supporting their expansion.”