Paymob has secured an additional $22 million in funding as part of an extension to its Series B round, bringing the total raised in this round to $72 million.
This funding, led by EBRD Venture Capital, will be used to enhance Paymob’s technological infrastructure, expand its reach across the Middle East and North Africa, and further help drive financial inclusion and digital payments in the region.
The latest investment will also allow the fintech company to continue developing its product offerings, which include a wide range of payment solutions like mobile wallets, cards, buy-now-pay-later (BNPL) services, and QR payment methods.
Paymob’s growth strategy involves expanding its merchant network and also cross-selling additional services to its existing merchants. With its offerings, including tools for businesses to accept payments, manage finances, and access working capital, the company has greatly increased its revenue and merchant engagement.
Founded in 2015 by three students from the American University in Cairo — Islam Shawky, Alain El-Hajj, and Mostafa Menessy — Paymob was created in response to the lack of digital payment solutions available for Egypt’s growing e-commerce market.
Initially, integrating payment gateways from local banks was a challenge, but the trio identified the potential for a payment infrastructure tailored to the region. Today, Paymob serves over 350,000 merchants across Egypt, Pakistan, Oman, Saudi Arabia, and the UAE.
Since its inception, the fintech firm has seen rapid growth. The company’s total number of merchants has more than tripled over the past two years, driven largely by its expansion into new markets and improvements to its product suite.
Paymob’s payment solutions are not just enhancing the way businesses operate but also contributing to the wider goal of creating a cashless society in the region. Its partnerships with global platforms like Shopify and Tabby have further expanded its reach, while its solutions for small and medium enterprises (SMBs) continue to be a core driver of its business.
In just over a year, Paymob’s transaction volume in the UAE has matched what it took five years to achieve in Egypt. This rapid growth is attributed to the UAE’s strong purchasing power and high adoption of digital wallets, which is reflective of the region’s overall appetite for digital payments.
Despite this outstanding growth in the UAE, Egypt remains Paymob’s largest market. CEO Islam Shawky says that Egypt’s digital payment adoption will soon rival that of the UAE, thanks in part to the central bank’s investments in the country’s digital infrastructure.
Paymob’s revenues in Egypt have grown sixfold since mid-2022, and the company became profitable in the country during the second quarter of this year. However, Paymob has yet to achieve profitability in other markets.
With continued support from major investors like PayPal Ventures, British International Investment (BII), FMO, and Endeavor Catalyst, Paymob is focused on leading the region’s push towards financial inclusion and digital transformation. The company’s vision remains focused on providing the tools and infrastructure necessary for a cashless future.
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