The news
- Valu, an Egyptian fintech, plans to list up to 25% of its shares on the Egyptian Exchange (EGX) within a year.
- Founded in 2017, Valu has facilitated 7.8 million transactions, commanding approximately 24% of Egypt’s consumer finance market.
- The company has evolved from a Buy-Now, Pay-Later (BNPL) platform to a comprehensive financial technology provider, offering customisable financing plans for up to 60 months without a down payment.
Founded in 2017, Valu has rapidly positioned itself as a leader in Egypt’s fintech landscape. Initially offering Buy-Now, Pay-Later (BNPL) services, the company has expanded its portfolio to include a wide array of financial solutions. This evolution was highlighted in August 2023, when Valu announced a rebranding to reflect its transformation into a universal financial technology powerhouse.
Operating across more than 32,000 points of sale, Valu has achieved over three million app downloads and collaborates with over 6,500 retailers and 2,000 online stores. This extensive network has enabled the company to capture approximately 24% of Egypt’s consumer finance market, with financing provided for 7.8 million transactions.
IPO plans and strategic objectives
Valu’s board has approved plans to list up to 25% of the company’s shares on the Egyptian Exchange (EGX) within the next year. This move aims to bolster the company’s capital base, enhance its market presence, and support its ambitious growth targets. The IPO is also expected to increase transparency and corporate governance, aligning with global best practices and attracting a broader investor base.
Valu’s decision to go public is part of a broader trend among African fintech companies seeking to leverage public markets for expansion and credibility. Notably, Nigeria-based Flutterwave, Africa’s most valuable startup, is preparing for an initial public offering. Founded in 2016, Flutterwave has experienced significant growth, operating in multiple African countries and offering a range of payment solutions.
Similarly, South Africa’s Tyme Group has attracted substantial investments, including a $150 million infusion from Brazil’s Nubank, valuing Tyme at $1.5 billion. These developments highlight the increasing maturity and global interest in Africa’s fintech sector.
The trend of African fintech companies pursuing IPOs signifies a maturing industry with robust growth prospects. Listing on local exchanges, as advocated by institutions like South Africa’s Absa Group, can enhance liquidity, provide exit opportunities for early investors, and democratise ownership among local populations.
For Valu, the planned IPO represents a significant milestone in its journey, reflecting its commitment to innovation and financial inclusion. As more African fintechs access public capital markets, the continent’s digital economy is poised for accelerated development, offering consumers enhanced financial services and fostering economic growth.
