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June 21, 2022

Alhokair Family buys minority stake in BNPL platform valU

EFG Hermes’ subsidiary valU, a buy-now, pay-later (BNPL) platform in the MENA region, has agreed to divest a 4.99% interest to Saudi Arabia-based Alhokair Family for $12.4m.

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What does the future hold for BNPL market?

The global Buy Now Pay Later (BNPL) market is estimated at a massive $120 million in 2021 – representing just less than 3% of the global ecommerce market. Yet the user-base is massive, with leading provider, Klarna, alone reportedly having 87 million users in 2021. This market is only expected to grow, with established companies like Apple and Goldman Sachs moving into the BNPL sector in bids to capitalize on this trend. To help you make the most of this growing market, GlobalData’s Buy Now Pay Later in 2022 and Beyond report provides detailed insight into the BNPL sector. This report:
  • Discusses the disruptive potential of the BNPL sector on the payments industry
  • Identifies the leading companies that are driving sector growth and the benefits this new payments solution provides to both merchants and consumers
  • Analyzes the consumer’s risk of using BNPL loans and government attempts at introducing regulations to the sector
  • Uncovers the main risks that consumers expose themselves to when borrowing with BNPL
Download this free report to get to know where this developing market is headed, and how you can reshape your strategies.
by GlobalData
Enter your details here to receive your free Report.

The deal values valU, the largest BNPL provider in Egypt, at $247.4m.

valU serves over 574,000 app clients in Egypt. It has more than 5,000 points of sale locations in its home country.

valU CEO Walid Hassouna said: “valU has definitely filled a financing gap in the Egyptian market and supported financial inclusion.

“The business model that we created strives to have a positive daily impact on hundreds of thousands of consumers, retailers, and service providers across the country.”

The transaction follows valU’s entry into the Saudi market via FAS Finance, a joint venture (JV) between FAS Labs and valU.

FAS Labs owns a 65% stake in FAS Finance, while the remaining 35% stake is owned by valU.

In Saudi Arabia, valU services will be available in Alhokair’s retail network of over 1,000 stores, in addition to online on the VogaCloset and monobrand websites.

The service will also be expanded to other vendors, retail networks, and merchants to cover the complete Saudi market. 

EFG Hermes Holding Group CEO Karim Awad said: “We are proud to have grown a strong brand like valU that, since late 2017, has not only established itself as the leading BNPL platform but has also attracted the interest of the world’s largest retailer, Amazon, one of the most important brands globally, and now one of the region’s most prominent retail players, Alhokair.”

The deal is subject to relevant regulatory approvals and satisfaction of certain conditions.

Free Report
img

What does the future hold for BNPL market?

The global Buy Now Pay Later (BNPL) market is estimated at a massive $120 million in 2021 – representing just less than 3% of the global ecommerce market. Yet the user-base is massive, with leading provider, Klarna, alone reportedly having 87 million users in 2021. This market is only expected to grow, with established companies like Apple and Goldman Sachs moving into the BNPL sector in bids to capitalize on this trend. To help you make the most of this growing market, GlobalData’s Buy Now Pay Later in 2022 and Beyond report provides detailed insight into the BNPL sector. This report:
  • Discusses the disruptive potential of the BNPL sector on the payments industry
  • Identifies the leading companies that are driving sector growth and the benefits this new payments solution provides to both merchants and consumers
  • Analyzes the consumer’s risk of using BNPL loans and government attempts at introducing regulations to the sector
  • Uncovers the main risks that consumers expose themselves to when borrowing with BNPL
Download this free report to get to know where this developing market is headed, and how you can reshape your strategies.
by GlobalData
Enter your details here to receive your free Report.

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