valU announced the purchase of a minority share in local fintech company Kiwe, the first social payment app in Egypt that allows onboarding of the unbanked group.
EFG Hermes Finance, EFG EV Fintech, dfin Holding, and Marakez are among the company’s current shareholders.
Why The Decision To Acquire Minority Stake In Kiwe
Kiwe’s fintech solutions appeal to young people by capitalising on their everyday payment and social interaction issues by allowing them to effortlessly collect, send, and spend money online.
Furthermore, it provides a modern, easy, and cost-effective payment platform to small businesses and startups, with the purpose of reducing the everyday financial problems experienced by young entrepreneurs doing business.
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valU is executing on its aim of becoming a holistic financial powerhouse, providing modern and convenient solutions to every part of people’s everyday life, by merging Kiwe’s service offering with valU’s BNPL plans.
The transaction also complements valU’s recent strategic purchase of Paynas, a full-service personnel management and benefits firm that delivers financial solutions to micro, small, and medium-sized businesses such as payroll cards and digital salary advances (MSMEs).
The acquisition of a minority share in Kiwe expands on valU’s aim to accelerate the growth of cashless transactions, which benefits financial inclusion in Egypt. It also aligns with valU’s objective to expand its customer base of young folks and small enterprises, and it will aid Kiwe’s growth by utilising valU’s broad network of vendors from a variety of industries.
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This investment builds on Kiwe and valU’s existing cooperation, which has seen them successfully collaborate on multiple significant events like as Le Marche and Shababco. This collaboration has also made it possible for new exhibitors who did not previously have access to payment methods to participate.
“This strategic investment in Kiwe comes as a natural step to further bolster our portfolio of financial services by extending more innovative solutions to MSMEs and young people. Serving these segments allows us to reach a larger population, ensure that we are alleviating financial hassles, drive financial inclusion, and contribute to greater convenience for millions of customers,” Habiba Naguib — Head of Strategy and Market Expansion at valU — said. “With its unique offering and simplified, engaging user experience, Kiwe will greatly benefit from leveraging our vast and ever-growing network of vendors. Hence, this is an investment that promises growth for all. We believe we can create more innovative financial solutions that unlock 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.”
Kiwe’s first investment this year, although the company expects to raise a seed round in the coming months.
“For us at Kiwe, valU’s investment is proof positive that we’re forging ahead in the right direction and signals confidence in our brand that offers unique services that are in high demand,” Co-Founder of Kiwe Omar Kamel said. “Having a leading fintech player such as valU onboard acts as a pivotal step forward in our expansion strategy by allowing us to benefit greatly from their success and giving us access to their vast network of vendors. With our companies aligned on a common vision set out to give seamless access to financial solutions and enhance financial literacy, we’re positive we will be amplifying sustainable social and economic success.”
Kiwe, which was founded in Egypt in 2018 by Omar Kamel, Fatma Ibrahim, and Mohamed Khalifa, targets youthful users by allowing them to gather, send, and spend money via its app. It also provides a digital payment network for small enterprises and startups, with the purpose of reducing the everyday financial problems that young entrepreneurs experience.
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valU, created in 2017, is an EFG Hermes Holding company that offers a purchase now pay later (BNPL) service in Egypt and Saudi Arabia.
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Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh