valU buys minority shares in fintech Kiwe
valU buys minority shares in fintech Kiwe
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- Egypt-based fintech valU has bought a minority stake in social payment app Kiwe, for an undisclosed amount.
- Founded in 2018 in Egypt by Omar Kamel, Fatma Ibrahim and Mohamed Khalifa, Kiwe targets young users, allowing them to collect, send and spend money through its app. It also offers small businesses and start-ups a digital payment platform aimed at easing the daily financial struggles of young entrepreneurs.
- valU, founded in 2017, is a subsidiary of EFG Hermes Holding that offers a buy now pay later (BNPL) service with a presence in Egypt and Saudi Arabia.
- The acquisition will build on valU’s mission to drive the growth of cashless transactions, and expand the customer base with young individuals.
Press release:
valU announced on Wednesday its acquisition of a minority stake in local fintech startup Kiwe – the first social payment app that facilitates on-boarding in the unbanked segment in Egypt.
Currently, EFG Hermes Finance, EFG EV Fintech, dfin Holding and Marakez are among the firm’s existing shareholders.
Kiwe’s fintech solutions attract young people, as the company capitalizes on their everyday problems with payment and social engagement, allowing them to easily collect, send and spend money electronically.
In addition, it offers small businesses and startups a digital, simple and cost-effective payment platform with the goal of alleviating the daily financial struggles faced by young entrepreneurs.
By combining Kiwe’s service offering with valU’s BNPL plans, valU delivers on its vision of becoming a holistic financing powerhouse, providing progressive and practical solutions to all aspects of people’s daily lives.
The investment also compliments ValU’s recent strategic acquisition of Paynas – a full-service employee management and benefits company that provides financial products such as salary cards and digital salary advances to micro, small and medium enterprises (MSMEs).
The acquisition of minority shares in Kiwe builds on valU’s mission to stimulate the growth of cashless transactions, which has a positive impact on financial inclusion in Egypt. It is also in line with valU’s mission to expand its customer base of young individuals and small businesses and will support Kiwe’s expansion by making use of valU’s huge network of suppliers across a number of sectors.
This investment builds on an existing partnership between Kiwe and valU, which has seen them join forces across several major events such as Le Marche and Shababco. This collaboration has also made it easier for new exhibitors who did not previously have access to payment solutions to participate.
Habiba Naguib – head of strategy and market expansion at valU – said: “This strategic investment in Kiwe comes as a natural step to further strengthen our portfolio of financial services by extending more innovative solutions to MSMEs and young people. By serving these segments, we can reach a larger population, ensure that we alleviate financial problems, drive financial inclusion and contribute to greater convenience for millions of customers.”
“With its unique offering and simplified, engaging user experience, Kiwe will greatly benefit from leveraging our vast and ever-growing network of suppliers. Therefore, this is an investment that promises growth for everyone. We believe we can create more innovative financial solutions that open open up many opportunities for us and our users, creating long-term value for the people who rely on our services every day to improve their lives, grow their businesses and positively impact their communities.”
This investment is the first for Kiwe this year, but it plans to raise a seed round in the coming months.
For his part, Kiwe co-founder Omar Kamel said: “For us at Kiwe, valU’s investment is positive proof that we are moving forward in the right direction and signals confidence in our brand that offers unique services that are in demand. “
“Having a leading fintech player like valU on board serves as a key step forward in our expansion strategy by allowing us to greatly benefit from their success and giving us access to their vast network of suppliers. With our companies aligned with a common vision set out to provide seamless access to financial solutions and improve financial literacy, we are confident that we will reinforce sustainable social and economic success.”
