With the deal closed, valU will now be available present across Alhokair’s expansive retail network of more than 1,000 stores as well as online on the VogaCloset and monobrand websites
Egypt’s largest buy-now, pay-later (BNPL) platform valU has announced that some of Saudi Arabia’s Alhokair Family have acquired a 4.99% stake in valU through a capital injection of $12.4 million, leading to a raise in the company’s valuation.
The acquisition comes soon after valU’s entry into the Saudi market last week after launching FAS Finance, a joint venture (JV) with FAS Labs with valU owning 35%.
“Saudi Arabia is our first new-market entry since we began operations out of Cairo five years ago. The acquisition agreement cements our solid partnership with Alhokair, a retail powerhouse and a perfect partner on our journey to expand across the region,” said Walid Hassouna, CEO of valU.
The deal includes $12.4 million in investments, marking the first investment for Alhokair Family in the BNPL business in Egypt, explained a valU statement.
The family members were namely Fawaz Abdulaziz Alhokair, Salman Abdulaziz Alhokair and Abdul Majeed Abdulaziz Alhokair.
“We are thrilled to be further growing our partnership with the Alhokair Family. The transaction puts valU, the largest BNPL provider in Egypt, at a $247.4 million valuation, and is a testament to valU’s visible success story, business model, and potential for growth in Egypt and on a regional level,” said Karim Awad, Group CEO of EFG Hermes Holding; valU is a subsidiary of EFG Hermes.
valU noted that Alhokair Family’s agreement to acquire a stake in the company signals investors’ interest in the non-banking financial institutions in Egypt and position it on the map as a leading innovator and exporter of financial inclusion solutions.
According to its recent published data, valU serves more than 574,000 app customers in the Egyptian market and currently boasts over 5,000 points of sale (POS) locations catering to hundreds of thousands of customers transacting in home furnishings, electronics, home appliances, fashion, auto spare parts, healthcare, education, and travel, among other services.
With the deal closed, valU will now be available present across Alhokair’s expansive retail network of more than 1,000 stores as well as online on the VogaCloset and monobrand websites.
The family’s agreement to acquire a stake in valU signals investors’ interest in the ‘non-banking financial institution’ space in Egypt and puts it on the map as a leading exporter of financial inclusion solutions, at a time when inflationary pressures are on the rise in the country and the rest of the region.
