Egypt-based fintech Paymob has announced the completion of a $22 million Series B extension round. The latest funding takes Paymob's total Series B raise to $72 million. The round was led by EBRD Venture Capital, with participation from Endeavor Catalyst and other existing investors, including PayPal Ventures, British International Investment (BII), FMO, A15, Nclude, and Helios Digital Ventures. This new capital injection will support Paymob's expansion efforts across the Middle East and North Africa (MENA) region.

A Decade of Innovation and Growth

Paymob, founded in 2015 by Islam Shawky, Alain El Hajj, and Mostafa El Menessy, began as a small venture during the trio's university years. While e-commerce in Egypt was still nascent, the founders recognized a gap in the market for digital payment solutions. Banks in Egypt at the time were not offering the necessary technology for e-commerce and other digital-first business models. To address this challenge, Shawky and his co-founders launched Paymob as a digital payment infrastructure solution, focusing initially on wallets. Since then, the company has evolved into a leading fintech player in the region, providing an omnichannel payment gateway that supports over 50 payment methods, including cards, digital wallets, and buy-now-pay-later (BNPL) options.

Expansion Across the MENA Region

The initial $50 million Series B round in 2022 was a key milestone for Paymob, enabling the fintech to expand its operations beyond Egypt into countries such as Pakistan, Oman, Saudi Arabia, and the UAE. Since then, the company has grown its merchant base by over three times, currently serving more than 350,000 merchants across five countries in MENA. Paymob’s offerings have expanded to include not only its payment gateway but also physical point-of-sale (POS) terminals and a dedicated mobile app for small and medium-sized businesses. The platform has helped businesses accept online and offline payments seamlessly, empowering SMEs to thrive in the digital economy.

The latest Series B extension comes at a time when Paymob has achieved profitability in Egypt for the first time. The company has seen a sixfold increase in revenue in its core market since the initial Series B round in mid-2022. The company’s strong performance in Egypt is driving its continued growth across the region. Despite achieving profitability in Egypt, Paymob has not yet reached profitability in its other markets but remains confident in its expansion strategy.

A Vision for Regional Leadership

Paymob’s expansion into the Gulf Cooperation Council (GCC) countries, particularly the UAE, has yielded rapid results. In just 14 months since launching in the UAE, Paymob's transaction volumes in the country have reached levels comparable to its Egyptian operations, which took five years to build. This growth has been driven by the high adoption of digital payments in the UAE, where 77% of consumers have used digital payment methods. The country’s higher purchasing power and strong currency have further accelerated the fintech's success in the region.

In addition to expanding its presence in the UAE, Paymob has also entered the Omani and Saudi Arabian markets. In December 2023, it became the first international fintech to receive Oman’s Payment Service Provider (PSP) license, and it earned the Saudi Payments PTSP certification in May 2023.

Building on a Strong Foundation

Paymob’s success is largely due to its focus on delivering value to its growing merchant base through innovative products and services. For example, it has partnered with global e-commerce platforms like Shopify and WooCommerce to provide embedded checkout experiences, making it easier for businesses to accept payments online. Additionally, Paymob’s partnerships with Shopify and buy-now-pay-later provider Tabby have significantly improved the company’s margins. These collaborations allow Paymob to cross-sell a wide range of financial services to merchants, from payment acceptance to working capital loans and advanced settlement tools.

The company’s comprehensive product suite and its ability to meet the needs of merchants have been central to its growth. Paymob offers businesses solutions to accept payments, manage finances, and grow their operations. By providing a range of services that address the entire lifecycle of a business's financial needs, Paymob has become an essential partner for SMEs across the region.

Looking to the Future

As Paymob continues its expansion across the GCC and beyond, the fintech remains focused on its mission to create a cutting-edge payment infrastructure that empowers SMEs. With a strong leadership team and the backing of prominent global investors, the company is well-positioned to continue its rapid growth and become the leading fintech in the region.

CEO Islam Shawky expressed his excitement about the company’s prospects in Egypt and the broader MENA region. He emphasized that the new funding would allow Paymob to capitalize on its current momentum while accelerating its expansion into new markets. Shawky highlighted Paymob’s commitment to supporting the transition to a cashless society, particularly in Egypt, where the government is actively investing in digital infrastructure to support the adoption of non-cash payment methods.

Paymob’s $22 million Series B extension marks another significant step in the fintech’s journey to becoming the leading financial services enabler in the MENA region. With a decade of innovation behind it and a clear strategy for future growth, Paymob is well-equipped to continue scaling its operations and helping businesses across the region thrive in the digital economy. The company’s ability to deliver value through a diverse range of payment solutions, combined with its strong financial position, ensures that Paymob will play a central role in shaping the future of digital payments in MENA.