- Paymob raised a $22 million Series B extension round, bringing total Series B funding to $72 million, led by EBRD Venture Capital with participation from Endeavor Catalyst and existing investors.
- The company has achieved 6x revenue growth in Egypt since its initial Series B funding in 2022, solidifying its market position.
- Paymob continues its expansion across the MENA region, with recent certifications in Saudi Arabia and Oman, and launched operations in the UAE in 2022.
- The fintech has grown its merchant base by 3.5x to serve nearly 350,000 merchants, offering over 50 payment methods.
Egypt-based fintech Paymob has successfully raised an additional $22 million in a Series B extension, bringing its total Series B funding to $72 million.
This latest funding round was led by EBRD Venture Capital, with participation from Endeavor Catalyst and existing investors such as PayPal Ventures, BII, FMO, A15, Nclude, and Helios Digital Ventures. These investors reaffirmed their confidence in Paymob’s business model, strategy, and leadership in the region’s fintech landscape.
Strengthening MENA Expansion
Founded in 2015 by Islam Shawky, Alain El Hajj, and Mostafa El Menessy, Paymob provides innovative digital payment solutions for online and offline merchants across the Middle East and North Africa (MENA).
The company has experienced substantial growth, particularly in its home market of Egypt, where it has recorded sixfold revenue growth since its initial Series B funding in Q2 2022.
This strong financial performance and the newly raised capital position Paymob well to pursue its ambitious growth strategy across MENA.
The funding will allow Paymob to further solidify its market-leading position in Egypt while expanding its presence in other key markets. Having launched operations in the UAE in 2022 and secured Saudi Payments PTSP certification in May 2023, Paymob is making significant strides in the region.
By December 2023, the company became the first international fintech to receive a Payment Service Provider (PSP) license in Oman, cementing its role as a key player in the Gulf Cooperation Council (GCC) region.
Growth Fueled by Series B Round
Paymob’s initial Series B round, completed in 2022, raised $50 million and was led by Kora Capital, PayPal Ventures, and Clay Point. This funding fueled the company’s expansion into new markets, enabling Paymob to significantly grow its merchant base.
The fintech now serves nearly 350,000 merchants across MENA, marking a 3.5x increase since the Series B round. Paymob has also expanded its range of payment acceptance solutions, offering 50 different payment methods through its payment gateway, point-of-sale (POS) terminals, and the Paymob app.
In addition to its wide range of payment options, Paymob has introduced embedded checkout experiences on popular e-commerce platforms such as Shopify and WooCommerce. This move aligns with the company’s commitment to supporting small and medium-sized enterprises (SMEs) by providing them with the tools they need to thrive in the digital economy.
Focus on SMEs and Regional Growth
Paymob’s co-founder and CEO, Islam Shawky, highlighted the company’s focus on empowering SMEs in the region. He expressed excitement over Paymob’s strong market position in Egypt and the positive reception of their services in the UAE.
Shawky emphasized that the new funding would help Paymob fully leverage the momentum it has gained in established markets while accelerating its roll-out across the GCC. He reaffirmed the company’s commitment to building cutting-edge infrastructure that enables businesses to prosper in the digital economy.
“We are thrilled with the growth we have seen in Egypt, where we maintain a leading position. The traction we’ve experienced in the UAE has also been remarkable. With this funding, we can further our efforts to empower SMEs across MENA by giving them the tools they need to participate in the digital economy,” said Shawky.
Strategic Investor Support
The investors backing Paymob have expressed their enthusiasm for the company’s expansion and future growth potential. Bruno Lusic of EBRD Venture Capital expressed his excitement about supporting Paymob as it embarks on its next phase of growth.
He emphasized the importance of Paymob’s role in the rapidly evolving payments landscape across MENA, as economies increasingly shift towards cashless transactions.
“We are confident that Paymob is uniquely positioned to capitalize on the trend towards non-cash payment methods with its advanced technology and strong management team. The payments landscape in Egypt and the broader MENA region is transforming, and Paymob is at the forefront of this shift,” said Lusic.
Endeavour’s Ongoing Support
Endeavor Catalyst, another key participant in the funding round, has been an ongoing supporter of Paymob’s journey. Allen Taylor, Managing Partner at Endeavor Catalyst, highlighted the growing global attention that fintech in the Middle East is attracting. He expressed his confidence in Paymob’s leadership and its ability to advance its goals of enabling businesses to thrive digitally.
“Fintech in the Middle East is gaining increasing global attention, and Paymob is one of the companies leading the charge. We have been supporting the team since they became Endeavor Entrepreneurs in 2022, and we are excited to continue backing their growth as they expand across the region,” Taylor commented.
Leading the Future of Digital Payments in MENA
Paymob’s rapid expansion and continuous growth reflect its leadership in the MENA fintech sector. By offering an extensive suite of payment solutions and focusing on helping SMEs participate in the digital economy, the company is poised to remain a key player in the region’s financial services landscape.
With substantial support from investors and a clear vision for the future, Paymob is well-positioned to capitalize on emerging opportunities in the ever-evolving digital payments ecosystem.
This new funding round will further enable Paymob to grow its operations, enhance its product offerings, and cement its position as the leading payment service provider across MENA. The company’s journey from its founding in 2015 to becoming a regional fintech powerhouse is a testament to its innovative approach and commitment to driving financial inclusion and business growth across the region.
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Last Updated on September 11, 2024 by Safiya K
