valU, EFG Hermes’ innovative consumer financing solution, was launched in 2017 to offer clients customized installment programs and a multitude of convenient repayment to purchase products. The EGP 250 million investment is the first of its kind fintech solution in the country, allowing customers to make purchases from over 485 merchants and pay in installments over 3-36 months.
valU plays a key role in EFG Hermes’ push toward diversifying its revenue stream through non-bank financial services that serve a wide range of clients. It is part and parcel of the Firm’s strategy to capitalize on global trends toward fintech solution while at the same time leveraging the fundamentals of the Egyptian market, such as a growing number of smart phone users and a heightened push toward financial inclusion and intermediation.
In 2019, valU witnessed stellar operational and financial results with the team having surpassed its targets for the year. Over the last twelve months, valU has broadened its product offering, its merchant network, and its geographic reach, while consistently growing its customer base and the number of transactions executed through the application.

2019 Operational Highlights

During the year, valU launched several new products and programs aimed at satisfying growing customer demand in several new segments of the market. Most importantly, 2019 marked valU’s expansion into the service sector with customers now able to pay for a wide range of services including gym memberships, medical and dental bills, spa treatments, travel expenses, and more. This not only significantly increased the number of merchant partnerships for valU but helped drive an increase in the number of customers to 58,517 and transactions to 55,145. To this end, valU also expanded into the online ecommerce segment, and has so far onboarded more than 70 online stores that now feature an option to check out using the app.

On the new programs front, valU launched its Hat-Trick Program, which offers customers the ability to pay for products and services from merchants in three convenient instalments with no interest or down payment required. The program, the first of its kind in Egypt, further solidifies valU’s position as a leader and innovator in the Egyptian instalment-based payment sector. It also began to offer a one-of-a-kind cash-back option, making it the only mobile application that can give clients instant cash back on purchases which they can then use to purchase products through valU’s merchant network.

Throughout the year, the team also worked to expand its geographic footprint. At the start of the year, registered merchants were only located in the Cairo and Giza governates. As at year-end 2019, valU had launched a new office in Alexandria and extended its merchant network to make valU registration booths available in other governorates such as Tanta, Mansoura, Minya, Assuit, and the Red Sea.

In parallel to its geographic expansion, valU also significantly broadened its registered merchant base, signing partnerships with multiple prestigious new merchants in a variety of new industries while renewing existing partnerships, bringing its total merchant count to 485 by the end of the year. New additions to its merchant roster include Suoq.com, SODIC, Apple, New Giza, Pepper’s Closet, and Travco. During 2019, valU successfully extended its partnership with IKEA and added two new repayment plans of 36 and 48 months to complement the 24-month option already available. In October 2019, valU was selected as sole financial partner for furniture shows Le Marche la Casa and Le Marche and later in the year for Ceramica Egypt, the country’s premiere tile exhibition.

Operationally, the team enhanced its service offering to clients by launching a direct sales team that makes visits to clients to register them for valU wherever they are, which had a significant impact on onboarding figures during the year. To help make the application more accessible to customers, the platform was revamped in February to feature a new user interface and enhanced user experience, which has allowed customers to make purchases, process payments, and browse their history faster and more efficiently.

As a testament to valU’s success thus far, the app was recognized as the “Fintech Innovation of the Year” at the prestigious 2019 Seamless Awards in Dubai as well as the E-Commerce Summit Award for the Top Payment Solution in Egypt.

Key Financial Highlights of 2019

Revenues for valU surged to EGP 25 million in 2019, a 111% Y-o-Y rise compared to the previous year.

2020 Outlook

Heading into the New Year, valU’s overall strategy is to continue expanding its customer and registered merchants base. On the merchant front, valU will shift its focus to strengthening its online merchant network as it aims to capitalize on the increasingly popular e-commerce segment of the market.
The team will also look to attract a wider base of clients through the rollout of a feature allowing customers to pay for goods upfront using a pre-paid or debit structure directly through the app. These customers will continue to benefit from the various services and promotions offered to installment customers.