Valu, the Egyptian fintech best known for bringing buy now, pay later to the MENA region, has secured a short term financing facility of up to EGP 3 billion, roughly US$63.6 million, from the National Bank of Egypt.
The capital line comes at a time when Valu is broadening its product set and geographic footprint, following a recent launch in Jordan.
Founded in 2017, Valu has expanded beyond point-of-sale credit into a broader set of consumer and business services that include investment offerings, instant cash redemption, savings products and payroll solutions for employers.
The funding from Egypt’s largest lender is framed as part of a national push to support non-banking financial providers, widen financial access and back innovation in consumer credit across the domestic market.
Bank financing of this scale signals two things. First, it underlines how incumbent banks are increasingly willing to provide liquidity to fintech firms with large merchant networks and clear customer flows.
That backing can accelerate merchant acquisition and increase the available liquidity for point-of-sale financing, but it also raises the bar for risk and compliance. Second, the facility will give Valu more runway to test product variants, extend credit lines to more customers and support international rollouts without immediately diluting equity.
The next few months will show if Valu can handle making more loans without losing money. Their ‘buy now, pay later’ service is great for getting new customers, but it is risky if the economy gets worse.
Because Valu offers many different products and works with banks, they can spread their risk and find new ways to make money. However, as they grow into new countries, they must be very careful to collect payments on time, keep their deals with stores profitable, and follow all government laws.
This post first appeared on Disrupt Africa
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