Cairo, Egypt – September 11, 2024: Paymob, a leading fintech company in the Middle East and North Africa (MENA), has announced the successful completion of a $22 million Series B extension round, bringing the total Series B funding to $72 million. The round was led by EBRD Venture Capital, with participation from Endeavor Catalyst, and reaffirmed by existing investors, including PayPal Ventures, British International Investment (BII), FMO, A15, Nclude, and Helios Digital Ventures.
Founded by Islam Shawky, Alain El Hajj, and Mostafa Menessy while still undergraduates at the American University in Cairo, Paymob began as a solution to the nascent e-commerce industry in Egypt, where only 2% of households participated due to limited online payment methods. Recognizing the gap between banks’ offerings and the fintech needs of digital startups, the trio launched Paymob in 2015 to bridge this divide. Since then, the company has evolved into an omnichannel payment gateway, supporting over 50 payment methods including cards, wallets, Buy Now Pay Later (BNPL), and QR payments.
Paymob now serves more than 350,000 merchants across five countries in the MENA region, enabling businesses to accept payments both online and offline. The fintech’s merchant base has more than tripled since 2022, thanks to rapid expansion beyond Egypt into Pakistan, Oman, Saudi Arabia, and the UAE. Paymob’s initial $50 million Series B round in 2022, co-led by PayPal Ventures, facilitated this significant growth.
Cross-Selling and Product Expansion Drive Growth
Paymob’s success stems from its ability to offer merchants a wide suite of digital financial products. “We help businesses accept, pay, manage, and grow,” said CEO Islam Shawky. Acceptance remains the core business, but Paymob cross-sells additional services such as payment management tools, working capital solutions, and financial tools to help merchants streamline their operations. By forming partnerships with platforms like Shopify and Tabby, Paymob has been able to significantly improve its margins and scale its services efficiently.
The fintech also launched an app for small and medium-sized businesses (SMBs), introduced embedded checkout experiences, and expanded into lending and advanced settlements. This focus on comprehensive solutions has not only increased Paymob’s merchant numbers but also boosted its average revenue per merchant.
Profitable in Egypt, Rapid Growth in the UAE
Paymob’s revenues in Egypt have surged sixfold since mid-2022, allowing the company to achieve profitability in the country for the first time during Q2 2024. Its transaction volume in the UAE, where digital payments adoption is on the rise, has grown to match the size of its entire Egyptian business in just 14 months—a milestone that took five years to reach in Egypt.
“We’re most excited that we’ve managed to grow profitably, addressing a real client need,” noted Shawky. He highlighted that despite industry challenges, Paymob has been able to scale while maintaining profitability, thanks to a solid business model and efficient growth strategies.
The demand for digital payments in the UAE has skyrocketed, with 77% of consumers adopting online payment methods. Paymob’s presence in the country is particularly strong, and the fintech plans to continue its expansion across the Gulf Cooperation Council (GCC) to meet the region’s growing appetite for digital financial solutions.
Looking Ahead
Paymob’s vision is to drive the shift toward a cashless society in Egypt and beyond. With ongoing efforts by Egypt’s central bank to build a robust digital payments infrastructure, Paymob is confident that Egypt will soon achieve the same level of digital adoption as seen in the UAE. Shawky emphasized the need for both issuance and acceptance to work in tandem for this transformation.
With over 120 million transactions facilitated and $5 billion in total payment volume reported in 2020, Paymob continues to play a pivotal role in empowering SMEs across MENA. The new funding will support further expansion and product development, as the company cements its position as a leader in the regional fintech space.
About Paymob:
Paymob is a financial services enabler providing an omnichannel payment gateway that empowers businesses to accept online and offline payments through a wide variety of methods. Founded in 2015 in Cairo, Egypt, Paymob operates across five countries and serves over 350,000 merchants.
