Egyptian Fintech Valu Eyes IPO Amid Rising African Market Interest

Valu, a rapidly growing Egyptian fintech company founded in 2017, is setting its sights on the public markets as it plans to list up to 25% of its shares on the Egyptian Exchange (EGX) within the next year. Known for its innovative Buy-Now, Pay-Later (BNPL) services, Valu has expanded its offerings to include a variety of financial solutions, reflecting its evolution into a comprehensive financial technology platform.

In August 2023, the company underwent a major rebranding to signify its transformation and growing influence within Egypt’s fintech ecosystem. Operating across over 32,000 points of sale, Valu has facilitated approximately 7.8 million transactions, boasting more than three million app downloads and partnerships with over 6,500 retailers and 2,000 online stores. The company’s impressive network has allowed it to capture about 24% of Egypt’s consumer finance market.

The Road to Public Listing

Valu’s decision to go public is driven by ambitions to strengthen its capital base, enhance market visibility, and expand its reach. The Initial Public Offering (IPO) aims to attract a wider range of investors, boost transparency, and improve corporate governance, aligning Valu with international standards.

The company’s move mirrors a broader trend among African fintech firms eyeing public markets for credibility and growth. Nigeria’s Flutterwave, Africa’s most valuable startup founded in 2016, is also preparing for an IPO. Known for providing diverse payment solutions across several African countries, Flutterwave’s rapid growth highlights the increasing maturity of the continent’s fintech landscape.

Similarly, South Africa’s Tyme Group has attracted significant investments, including a $150 million injection from Brazil’s Nubank, which valued Tyme at $1.5 billion. This influx of capital reflects a growing global interest in African fintech startups and their potential to transform financial services on the continent.

A Growing Trend in African Fintech

The push for African fintech companies to go public signifies a maturing industry with promising growth prospects. Listing on local exchanges, as promoted by entities like South Africa’s Absa Group, could enhance liquidity, provide exit opportunities for early investors, and democratise ownership for local communities.

For Valu, the IPO is a crucial step in its journey towards innovation and financial inclusion. As more African fintech companies access public capital markets, the continent’s digital economy is expected to flourish, offering enhanced financial services to consumers and driving broader economic growth.