- The transaction falls in line with valU’s strategy to grow the business and enhance its technological prowess, allowing it to reach Paynas’ large and growing base of micro, small and medium enterprises
- The acquisition helps ValU further cement its position as a leading fintech platform with a comprehensive offer and the best value-added solutions
Cairo: valU, MENA’s leading Buy-Now, Pay-Later (BNPL) lifestyle-enabling fintech platform, announced today that it has acquired 100% of Paynas, a full-service employee management and benefits company providing financial services to micro, small, and medium-sized enterprises (MSMEs) in a signing ceremony attended by Dr. Rania A. Al-Mashat, Minister of International Cooperation
The acquisition builds on valU’s mission to offer the wider community access to seamless financial solutions that facilitate their daily activities and improve their lifestyles; and reinforces Paynas’ mission to be MENA’s leading financial wellness and benefits platform, by offering access and convenience beyond employment. Joining forces with Paynas will act as a gateway for value to reach micro, small and medium enterprises which are considered to be the backbone of the economy, aiming to unlock various opportunities for both employers and employees.
Paynas offers a range of employee management and payment services to MSMEs, including a cloud-based platform to manage time and attendance and payroll, financial products such as salary cards and affordable health insurance, and financial wellness products such as earned salary payments and salary advances. By combining Paynas’ service offering with valU’s BNPL plans, which cover healthcare, education, white goods, furniture and travel, among other things, valU delivers on its vision of becoming a comprehensive financing powerhouse with progressive and practical solutions for all aspects of people’s daily lives. .
valU will now leverage a powerful ecosystem that constitutes compelling B2B partnerships, multiple acquisition channels and a multi-product platform that will maximize returns through cross-selling synergies and low customer acquisition costs for both players. The partnership opens wide doors for valU’s BNPL solutions by making use of Paynas’ list of MSME customers and employees, integrating them into valU’s customer base, while at the same time expanding Paynas’ offering with a comprehensive range of financing products. Furthermore, digitizing the data sets of Payna’s users will better position the value to offer them more cost-effective BNPL products by improving loan disbursal cycles and credit scoring systems.
Rania A. Al-Mashat, Minister of International Cooperation said: “This pivotal transaction reflects the compelling investment opportunities and growth prospects presented by the startup and fintech sectors in Egypt. It underscores the country’s efforts to become a leading entrepreneurial hub in the region given a set of unique advantages such as talented youth, significant economic opportunities and the continued efforts of the public and private sectors to create a favorable business environment for start-ups that promotes the participation of the private sector in the country’s progress. The transaction also demonstrates the success of Egypt Ventures, the first state-backed venture capital vehicle established in 2017, and the accelerator program EFG-EV Fintech, jointly owned with EFG Hermes Holding, in supporting start-ups on their journey of growth and expansion, in line with Egypt’s agenda for digital transformation and financial inclusion, and their achievements in opening doors for entrepreneurs to deliver their role in supporting the growth of the Egyptian market.”
Walid Hassouna, CEO of valU said: “Paynas is a strategic fit for us, and the combination of our two companies will create significant value for our shareholders and customers by delivering a 360° financial and lifestyle enabling solution, aiming to address all aspects of people’s lives and purpose. to improve their overall quality of life. That, and the addition of exceptional talent to our team, positions us as a leading fintech platform in the region. Since our inception, our most important resource has been our employees, and we set our sights on 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 power technological products and bring new conveniences to our customers while effectively rolling out cross-border initiatives in the region.”
valU will leverage Paynas’ digital and technical prowess to become the best fintech platform. As the first start-up in Egypt with an Agent Banking License, Paynas integrates SMEs into the financial system by digitizing their salary payments via Paynas’ salary cards – issued in partnership with Banque Misr and powered by Visa – which together with Paynas’ app, allow employees to improve their financial planning and well-being and contributes to a cashless economy. By combining valU’s list of installment programs with the Paynas salary card, the acquisition offers customers a seamless shopping experience and is a stepping stone towards their further integration into Egypt’s digital economy.
Mohamed Mounir, CEO of Paynas said: “Paynas has built a leading brand and has played a pivotal role in promoting the financial inclusion of micro, small and medium enterprises and the unbanked in Egypt. With both companies driven by having a social and economic impact, we look forward to making more meaningful changes in people’s lives by allowing them greater access to finance and bringing effective financial solutions to their doorsteps.This acquisition is proof positive of the success we have achieved so far, success we can largely attribute to the support of our investors who believed on our vision.”
This is ValU’s second investment this year, following the investment of a 35% stake in FAS Finance, the consumer finance arm of Saudi Arabia’s FAS Labs, which allowed ValU to expand geographically and enter the Saudi Arabian market, while providing consumer finance solutions through FAS . During the same month, the company announced the sale of a 4.99% stake to members of the Alhokair family, marking an important stepping stone for the platform to create strategic regional partnerships.
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About valU
A subsidiary of EFG Hermes Holding established in 2017, valU is the leading Buy-Now, Pay-Later (BNPL) lifestyle enabling fintech platform offering convenient and customizable financing plans up to 60 months. With more than 5,000 points of sale and over 330 websites, valU offers access to a wide network of retail and e-commerce suppliers across a multitude of categories, including home appliances, electronics, home finishing, furniture, residential solar solutions, healthcare, education, travel and fashion, among others. As the first platform of its kind in the MENA region, valU customers can receive instant credit decisions through their devices and access the platform’s ever-growing partners.
For further information, please contact:
The EFG Hermes Holding PR team
[email protected]
May El Gammal
Group Chief Marketing & Communications Officer at EFG Hermes Holding
[email protected]
Note on forward-looking statements
In this press release, EFG Hermes Holding may make forward-looking statements, including, for example, statements about management’s expectations, strategic goals, growth opportunities and business prospects. These forward-looking statements are not historical facts, but instead represent only EFG Hermes Holdings’ belief about future events, many of which are inherently uncertain and beyond management’s control and include, among other things, volatility in the financial markets; actions and initiatives taken by current and potential competitors; general economic conditions and the effect of current, pending and future laws, regulations and regulatory actions. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made.
About Paynas
Established in 2019, Paynas is a digital platform that empowers businesses and their employees through cloud-based workforce management, payments and financial benefits. By enabling businesses to digitize core HR processes, run and pay payroll accurately and seamlessly, while providing a range of benefits to their employees aimed at improving their financial well-being and accessibility, Paynas improves the day-to-day operations of smaller businesses and the everyday life of its employees.
