valU acquires 100% of the financial services provider Paynas – Tech – Business
Minister of International Cooperation Rania Al-Mashat attended the signing.
valU said the move is a gateway to reach out to micro, small and medium enterprises which are considered the backbone of the economy, with the aim of unlocking various opportunities for employers and employees.
Paynas offers a host of employee management and payment services to MSMEs, including a cloud-based platform to manage time and attendance and payroll, financial products such as pay cards and insurance affordable health, and financial wellness products such as payment of earned wages and salary advances.
valU also said the transaction is part of its plan to become a holistic finance powerhouse that provides progressive and practical solutions to all aspects of people’s daily lives, particularly in the areas of healthcare, education , appliances, furniture and travel, among others.
“This key transaction reflects the attractive investment opportunities and growth prospects presented by the start-up and fintech sectors in Egypt. It highlights the country’s efforts to become a leading entrepreneurial hub in the region given a set of unique advantages such as talented young people, significant economic opportunities and the continuous efforts undertaken by the public and private sectors to creating a conducive business environment for startups that promotes private sector participation in the advancement of the country,” Al-Mashat said.
She added that the acquisition showcases the success of Egypt Ventures, the first government-backed venture capital vehicle established in 2017, and its accelerator program EFG-EV Fintech, jointly owned with EFG Hermes Holding. , to support start-ups in 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 to play 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 generate significant value for our shareholders and customers by providing a 360° financial and lifestyle solution, with the goal of addressing all aspects of people’s lives and the goal of improving their overall quality of life,” said valU CEO Walid Hassouna.
“This, and the addition of exceptional talent to our team, firmly positions us as a leading fintech platform in the region. Since our inception, our most important asset has been our people, and we have targeted a company that puts people at the heart of everything it does. We are very excited and eager to see great new ideas come to life under the valU brand that can drive technology products and bring new conveniences to our customers while effectively deploying cross-border initiatives in the region,” he added.
As the first startup in Egypt to have a banking agent license, Paynas integrates small and medium-sized businesses into the financial system by digitizing their salary payments through Paynas’ payroll cards – issued in partnership with Banque Misr and powered by Visa – which, in tandem with the Paynas app, empowers employees to improve their financial planning and well-being and contributes to a cashless economy.
This is the second investment made by valU in 2022, following the purchase of 35% of the shares of FAS Finance, the consumer finance arm of FAS Labs in Saudi Arabia, which has enabled valU to expand geographically and to enter the Saudi market.
Additionally, the company a few months ago sold a 4.99% stake to members of the Saudi Alhokair family.