Today is a big day for Valu — with the local leading fintech not only joining the EGX, but welcoming Amazon as a direct shareholder too. In the run-up to the big day, EnterpriseAM sat down with Valu CEO Walid Hassouna (LinkedIn) to find out more about the reasons behind the company’s success and what to look out for from the company going forwards.

ICYMI- In part one of our conversation, we touched on how the fintech became a household name and what's still to come. You can check it out here.

In part two, EnterpriseAM heard from Hassouna about how the company stands out and succeeds in a crowded consumer finance market, what’s driving profitability and revenues, and more. Edited excerpts from our conversation, below:

EnterpriseAM: What’s driving revenue growth on the one hand, and profitability on the other?

Walid Hassouna: For sustainable revenue growth, customers will not come to you unless you have a real hook — that’s why you often see strategies like limited-time offers, steep discounts, or cashback promotions. When a customer engages with us for the first time, we make sure that they gain significant value, even if it means we take a short-term loss. The key, of course, is to manage this carefully. It's about getting new customers on board and then selling them on doing more with us.

For example, if a customer starts by purchasing electronics through us, we’ll introduce them to other categories like fashion, where we can offer better margins, or travel, where we’re the exclusive partner with EgyptAir. Our unique partnerships with platforms like Amazon and Noon further strengthen our position in the market, allowing us to provide unparalleled value, while driving long-term engagement.

In practice, our solution offers customers a revolving credit limit, which operates much like a credit card. While regulatory constraints in Egypt require us to issue a prepaid card, rather than a credit card directly, the functionality mirrors that of a credit card seamlessly. Customers can transfer funds from their app to the prepaid card and use it just as they would a credit card, enjoying the same flexibility and convenience. This innovative approach allows us to deliver a credit-like experience within the current regulatory framework.

From there, we become your go-to payment solution for everything, whether you’re ordering meals on Talabat, shopping on Amazon, or booking a ride-hail. We want to be our customers' preferred payment method and then keep them for life.

For us as a consumer finance business, profitability hinges on two major factors. The first is access to commercial debt, and the second is the ability to effectively manage risk. Along with a couple of key players in the market, we enjoy excellent access to commercial debt. The banking sector in Egypt is highly advanced compared to others in the region, and it helps that banks are now very accustomed to working with NBFIs. We’ve been able to raise debt with no recourse to our shareholders. So everything that we have raised in commercial debt since inception remains on our books and under our own risk. To date, we have 22 banks lending to Valu, with facilities totalling EGP 8.2 bn.

E: And what about securitization?

WH: We are one of the biggest issuers of securitized bonds — we’ve done EGP 14 bn worth of securitizations in the past three years. We've also started offloading with banks and discounting with other banks, all of this with no recourse on Valu.

If you have real access to credit, that reduces costs significantly and enables you to scale — it makes your economies of scale work, right? If we now sell USD 1.2 mn or USD 1.3 mn a day, it's because we have this capacity to raise debt and use it.

E: You also mentioned risk management a moment ago?

WH: Because we maintain very low risk, minimal NPLs, and limited provisions, profitability stems from our ability to scale effectively while managing risk. Of course, our revenue streams are diverse. We generate income through interest rates, fees, and rebates from merchants. Additionally, we have non-lending revenue sources, such as offering the largest gift card program in Egypt, affiliate marketing partnerships with Amazon, and collaborations with other players. We also offer pay products, Valu Business, salary advances, and more. While we have multiple revenue streams, the key to our success lies in our very low risk profile and strong access to financing, which enable us to scale efficiently and drive profitability.

E: There are something like 45 consumer finance companies in Egypt, and no real consolidation in sight that we can see today. What’s your moat?

WH: The market grew 30% last year — Valu grew 70%. We’ve outgrown the market over the past three years despite rising competition, and some players are just burning money. It helps that we have the biggest network — that’s one of our big edges alongside turnaround time. Consumers may consider having a second company, but they’ll choose Valu first because it’s the most widely accepted — it’s accepted everywhere with a point-of-sale machine. We have the biggest, most inclusive network, from utility bills up to boats, homes, and luxury travel.

I believe our boldness and unwavering commitment to innovation have been the driving forces behind our success. From the very beginning, EFG Holding recognized that one of the biggest risks in launching Valu was the possibility that other market players such as major retailers and traditional consumer finance companies might replicate our model. This challenge pushed us to stay ahead by constantly evolving, thinking about versions 2.0, 3.0, and beyond. It enabled us to expand from the foundational revolving credit limit, which is fast and instant, to a diverse range of offerings, including online solutions, gift cards, cashback programs, C2C platforms, loans, boats, and big-ticket items. This relentless focus on innovation has been key to our growth and differentiation in the market.

E: Looking three years down the road, what’s driving growth?

WH: We want to focus more on non-revolving facilities, particularly for big-ticket items. This approach isn’t groundbreaking, it aligns with what banks already do — they have credit cards and personal loans. Currently, our products lean more toward the credit card model, but we’re actively exploring ways to develop our own unique take on the personal loan concept.

E: Is that where Ulter comes in?

WH: Ulter, yes, but also Shift, our car-finance product, which is a key part of our strategy for the next couple of years. During this period, we aim to expand the use of our prepaid card beyond Valu customers, as it is the fastest-growing card in Egypt. Allowing other customers to use it is a priority for us, and we’ve already submitted an application to the FRA for a fintech license to enable this.

And, of course, we think it's very important to our ecosystem to be able to lend to our merchants. Our affiliate marketing business is growing very well right now. We are adding a significant number of customers. We’re also preparing to launch our own marketplace for affiliate marketing soon. Another focus area is our expansion into Jordan, as we aim to enter markets where we can establish a strong presence and truly own the space.

E: Why Jordan?

WH: Our approach is closely aligned with EFG Holding’s strategy, as we aim to be a top player in every market we enter. That’s why we’re selective about where we operate. Competing in markets like Saudi Arabia or the UAE, where giants like Tabby and Tamara dominate, doesn’t align with our vision. For example, while Tabby handles USD 10 bn annually, the entire Egyptian market of 45 companies collectively sells around USD 1 bn. Instead, we’re focusing on Jordan, where we can build a strong presence and establish ourselves as a leader. This targeted approach allows us to concentrate our resources and maximize our impact.

Jordan is our focus for this year. Additionally, we’re exploring opportunities in one Asian market and one North African market, with plans to possibly enter in the second half of 2026. We prioritize markets with low credit card penetration, limited consumer finance options, and gaps in the products currently offered — areas where we can make a meaningful impact.

E: What’s keeping you awake at night right now?

WH: Customer complaints. While it might seem unconventional, I still make it a point to read customer complaints. I know it’s not the most efficient use of time, but it keeps me directly connected to our customers and provides invaluable, firsthand insights into where we may genuinely fall short or be able to do better.

Additionally, I often find myself lying awake at night thinking about new products. We’re working on something truly disruptive, and it’s fascinating and sometimes consuming how much it occupies my thoughts during those quiet hours. I am deeply invested in driving innovation and want to ensure we stay ahead in the market.