Valu has been having an “exceptional” year so far, delivering “outstanding” earnings. The EGX-listed fintech giant saw its net income more than double y-o-y to EGP 541 mn during the first nine months of the year and revenues jump 84% y-o-y to EGP 4.0 bn during the period, according to its latest earnings release (pdf).

Diving deeper: Gross merchandise value (GMV) was up 56% y-o-y during the nine-month period to come in at EGP 17.3 bn, with transactions more than doubling to EGP 6.1 mn. Total loans issued reached EGP 14.5 bn, up 49% y-o-y, for 9M 2025, while the number of active users climbed to 873k, giving the company a 23% market share as of August.

Zooming in: Net income came in at EGP 201 mn during the third quarter of the year, marking a 966% y-o-y jump, while revenues jumped 70% y-o-y to EGP 1.4 bn.

Behind the numbers: Valu’s expanding customer base and higher engagement levels supported the strong results, with increased reliance on the platform’s core lending product and growing daily use of its products. To dig deeper into the numbers and the strategic direction behind them, we spoke to Valu CEO Walid Hassouna.

KEY HIGHLIGHTS FROM OUR TALK WITH HASSOUNA-

Hassouna told EnterpriseAM that the firm’s performance this year is being driven by a structural shift in how consumers use the platform, with prepaid card frequency, disciplined underwriting, and deeper customer engagement emerging as the core levers behind profitability. Hassouna said Valu has hit a “tipping point” where higher-frequency, smaller-ticket transactions are generating operating leverage and accelerating net income well above revenue growth.

Also from Hassouna:

• Valu is preparing its first EGP 2-3 bn conventional bond issuance, expected to hit the market in 1Q 2026.
• The fintech has staffed its new Jordan entity, wired USD 7 mn in capital, and expects to begin operations in 1Q 2026.
• The first reduced its approval rates and introduced new rules, particularly for customers with high debt-to-income ratios.
• The player is looking to get its SME lending license.
• Average daily transactions have grown from 10k last year to 22.2k per day.

INSIDE THE VALU PLAYBOOK-

To understand the drivers behind Valu’s accelerating profitability and the roadmap for 2026 we spoke with Hassouna for a deeper look under the hood.

EnterpriseAM: You've got net income up 139% and revenue up 84%. The one thing that really just jumped out at us is the delta between income growth and revenue growth, which suggests a lot of operating leverage. What are the top factors that allowed profitability to accelerate so much faster than the growth in the top line?

Walid Hassouna: We’re trying to be in the lives of customers on a daily basis. Our average daily transactions have grown from 10k last year to 22.2k per day. Our main goal was always to have a smaller ticket size with higher frequency because this makes customers less sensitive to the current interest rate environment and willing to pay interest on smaller transactions. This increased frequency, driven by prepaid card growth, has led to operational efficiencies (less overhead, simpler processes), even if the prepaid card itself is slightly more expensive. This is basically why our net profit growth is higher than our revenue growth. This will be the case going forward because we hit a tipping point last year.

EnterpriseAM: You had a 56% uptick in gross merchandise value that you covered, and yet NPLs (Non-Performing Loans) were still sub 1% at like 0.92% or so. Typically, you would see, especially in a climate like this where consumers are strained, that rapid revenue growth also translates into new strain on the loan book. What has allowed you to constrain the NPL ratio so tightly while you're growing the GMV so fast?

WH: In the last few years, our main focus has been growing our market share. This year, after the IPO, we had a shift in our strategy. Most transactions are from our recurring customers, which accordingly reduces our NPL. We only want to onboard customers with extraordinary credit performance, so we're now scrutinizing new customers with a focus on the highest-quality customers in terms of risk. We’ve decreased our [new client] approval rates from the mid-50s to the mid-40s. We remain above 20% market share, competing with 45 companies, but most importantly, we're protecting our market share by not onboarding lower-credit profiles.

EnterpriseAM: Tell us about consumer sentiment heading into 2026. Some folks are reading the tea leaves right now and seeing signs of a further deterioration, not just in purchasing power but in the ability to manage the debt that some segments of the consumer market had racked up. How do you feel about that? How are you addressing that in the business model?

WH: We’ve seen this, which is why we reduced our approval rates and introduced new, more stringent underwriting rules, particularly for customers with high debt-to-income ratios, even if they fall within regulatory limits. We’re also avoiding customers who have already racked up debt elsewhere. There is a new breed of customers coming in with minimal information about this product. Some practices are converting this into something similar to cash loans, and this is not something the regulator would love to see. We’re actively screening out that sort of potential customer.

Also, many customers are very wise right now. They understand we're in an easing cycle. They'll be better off by next year after a decrease in interest rates. Those customers will not move right now.

I believe next year will look like the following: There will be a massive decrease in interest rates, and we're already planning to decrease ours significantly. Actually, we have a promo in December on that basis. Also, you will see fewer promos from many players, including Valu, because these promos are loss-making for customer acquisition. And since the FRA has stopped issuing more licenses, everyone is going to be very wise with loss-making promos — they’re going to dry up. It’s very important what we’ve done this year to onboard customers with high affordability and high willingness to pay.

EnterpriseAM: So careful attention to who you onboard and to the ongoing credit quality of the portfolio.

WH: Yes. The other thing is we are now more focused on our prepaid card as an everyday solution. We think it has already been transformed into a credit card, which is very good. We're also focused on longer tenor loans. We’ve increased our market share significantly in auto loans. It jumped from around 3-4% to 15%. We also introduced Shop’IT, an in-app checkout marketplace operated by Valu.

EnterpriseAM: What does that mean in practical terms? What does Shop’IT do exactly? How would we use it?

WH: When we launched Valu, people thought that if they had Valu and an active limit, they could easily transact through the app like a marketplace. The reality is they had to go to Amazon, Noon, or Zara to make a transaction, whether offline or online. Now, we have more than 25 merchants who have made their full catalog available in our app. So, they can search, find what they want, buy the product, pay for it, and wait for it to be delivered. This is Shop’IT.

EnterpriseAM: How much of that is competition to your relationship with Amazon, your shareholder?

WH: It's the contrary. Our shareholder is very happy because we now act as their affiliate marketing company. We're one of those partners using affiliate programs. So, it's better for their strategy and enhances our relationship. The full Amazon catalog is available on our app right now.

EnterpriseAM: You had a 75% jump in transactions per customer. How did you get them to view you as an everyday solution and not for big-ticket purchases?

WH: We had this goal from day one. It was difficult for merchants and clients because we were focused on “pay with Valu,” not “install with Valu.” We added many categories that customers hadn’t previously considered for affordability. We increased our exposure to fashion, pharmacies, and education. We're signing a new agreement with electric charging companies. We also introduced Spark’IT, a zero-cost one-month tenor product across all our merchants. And we built our prepaid card in the customer's mind. Our most prominent players in the prepaid card market will be ride-hailing apps and food delivery services.

EnterpriseAM: When we spoke last around the IPO, you saw Shift and Ulter as key to your strategy. Today’s report called them notable contributors to earnings.

WH: It's essential to look at this from 2022. Competition was increasing, and we didn’t want this product commoditized. Last year, in the same nine months, 72% of our business came from U. This year, the figure is 60%. Our prepaid card grew from 9% to 18%. Shift moved from 11% to 13%. Ulter and loans have tripled. They now represent 6.5% of our GMV. This was our strategy from day one: having multiple products that are wider and deeper than any competition.

EnterpriseAM: What can we expect from Jordan in 2026, and when do you think Jordan hits the P&L?

WH: We’ve already got a mandated chairman and a country manager, and a CEO who was hired last month. We wired USD 7 mn to our account in Jordan. We’re in the final stages of licensing, and we’re going to operate in 1Q 2026. Jordan will be a little bit loss-making in year one. Still, you will see profitability growth at Valu on a consolidated basis between 2026 and 2027, even after consolidating Jordan. Our hope is that Jordan turns positive in 18 months.

EnterpriseAM: Then we spoke again about the IPO, focusing on one Asian market and one African market in the second half of 2026. Is that still in the cards?

WH: So, Jordan is our Asian market. We’re focused on it. A market after that will be an African market. It might be delayed until early 2027. We need to make sure Jordan is on autopilot before directing resources into a new market. But it’s an African / North African market.

EnterpriseAM: In terms of growth heading into the new year, is there that stereotypical thing that is 20% of our business delivering 80% of our growth? What is the big driver?

WH: The Valu product line is now very diversified. The maximum frequency will be on the prepaid card, but it will represent less than 30-35% of our business. Then it’s U, the revolving credit limit that we’ve set on a closed-loop basis, because these are recurring customers.

We have over 800k active customers. So my assumption is prepaid card, followed by U, and then everything else. Shop’IT would be the hero of next year's growth, but I don’t believe it’s going to exceed 5-7% of our sales. The beauty of Shop’IT is that it offers a massive return: we receive a rebate and an immediate marketing commission.

We submitted for an SME lending license. We think we’ve got everything we need to serve our merchants not only on the B2C side but also on the B2B side. We have a readily available closed-loop financing program for them based on their history and performance with us. And we're considering new instruments for financing next year. We want to add to what we have on discounting, offloading, securitization, bilateral agreements, and bond issuance.

EnterpriseAM: Any color on the potential bond?

WH: The bond is in early stages. We finalized the private rating process, and it was very positive. We hired EFG Hermes to be our advisor on that, and it's in the early stages. We're looking at EGP 2-3 bn of funding. This will be conventional financing. I expect the bond to be issued and subscribed to in the first quarter of next year.