Minister of International Cooperation Rania Al-Mashat witnessed the signing.
valU said the move is a gateway to reach micro, small and medium businesses that are considered the backbone of the economy, with the goal being to unlock various opportunities to both employers and employees.
Paynas offers a multitude of employee management and payment services to MSMEs, including a cloud-based platform to manage time and attendance and payroll, financial products such as payroll cards and affordable health insurance, and financial wellness products such as earned wage pay-outs and salary advances.
valU also said that this transaction is part of its plan to become a holistic financing powerhouse catering with progressive and convenient solutions to every aspect of people’s daily lives, especially in healthcare, education, home appliances, furniture, and travel, among others.
“This pivotal transaction reflects the compelling investment opportunities and growth prospects presented by the start-up and fintech sectors in Egypt. It underscores the country’s efforts in becoming a leading entrepreneurial hub in the region given a set of unique advantages such as talented youth, significant economic opportunities, and the continued efforts undertaken by the public and private sectors to create a conducive business environment for startups that fosters the participation of the private sector in the country’s advancement,” said Al-Mashat.
She added that the acquisition showcases the success of Egypt Ventures, the first government-backed venture capital vehicle established in 2017, and its accelerator programme EFG-EV Fintech that is jointly-owned with EFG Hermes Holding, in supporting start-ups on their journey for growth and expansion, in line with Egypt’s digital transformation and financial inclusion agenda, and their achievements in opening doors for entrepreneurs so they can deliver their role in supporting the growth of the Egyptian market.
“Paynas is a strategic fit for us, and the combination of our two companies will drive significant value for our shareholders and customers by delivering a 360° financial and lifestyle enabling solution, with the objective of addressing every aspect of people’s life and the goal of improving their overall quality of living,” said CEO of valU Walid Hassouna.
“That, and the addition of exceptional talent to our team, firmly positions us as a leading fintech platform in the region. Since inception, our most important asset has been our people, and we targeted a company that puts people at the heart of everything they do. We are very excited and look forward to seeing new, big ideas come to life under the valU brand that can drive tech products and bring new conveniences to our customers while efficiently rolling out cross border initiatives in the region,” he added.
Being the first startup in Egypt with an Agent Banking Licence, Paynas integrates small and medium businesses into the financial system by digitising their wage payments via Paynas’s payroll cards — issued in partnership with Banque Misr and powered by Visa — which, in tandem with the Paynas app, allows employees to improve their financial planning and wellness and contributes to a cashless economy.
This is the second investment valU carries out in 2022, following its purchasing of a 35 percent share of FAS Finance, the consumer finance arm of Saudi Arabia’s FAS Labs, which allowed valU to expand geographically and enter the Saudi market.
Moreover, the company sold a 4.99 percent stake to members of the Saudi Alhokair family a few months ago.