Fresh from a triumphant debut on the Egyptian Exchange (EGX) that saw its stock price surge 852% on the first day of trading, BNPL leader valU is already securing its next tranche of funding. The company, a spinoff from financial services titan EFG Hermes, has just closed a EGP 460.7 million ($9.2 million) bond issuance.

The move is notable not for its size, but for its timing and method. Rather than leveraging its new public status to raise equity, valU is doubling down on debt. This issuance is the first from a newly approved EGP 10 billion ($200 million) securitization program, a powerful funding mechanism that has quietly fueled its ascent.

The 12-month bond, rated Prime 1 for its low credit risk, is backed by a portfolio of the company’s consumer loan receivables. It underscores a core part of valU’s strategy: using its own loan book to generate cash for further growth in a continuous, capital-efficient cycle.

The Securitization Engine

While the IPO grabbed headlines, valU’s real growth engine has been its mastery of securitization. This financial process involves bundling its consumer receivables (the money owed by its customers) and selling them to investors as bonds. This provides valU with immediate cash flow to issue new loans, without diluting ownership or waiting for customers to pay off their installments.

Since 2021, valU has raised a total of EGP 12.3 billion ($246 million) across 15 issuances, averaging a new capital raise roughly every quarter. This consistent access to capital, orchestrated by its parent company EFG Hermes, has given it a significant edge over venture-backed competitors scrambling for funding in a volatile market. The new, larger EGP 10 billion program signals an acceleration of this strategy.

From Corporate Spinoff to Public Darling

Launched in 2017 with an initial EGP 250 million investment from EFG Hermes, valU was designed to bridge the gap between Egyptians’ consumer aspirations and their purchasing power. Led by Walid Hassouna, who transitioned from heading EFG’s wider non-bank financial institutions platform to being valU’s dedicated CEO, the company was built on two principles: speed and integration.

“We built valU on two pillars — the first was to reduce friction and make it easier for many more people to access credit,” Hassouna said recently. The goal was to give customers a credit decision in under ten minutes. The second pillar was to position valU not as a lender, but as a ubiquitous payment method.

This approach has paid off. As of its listing, valU (VALU.CA) has processed over 7.7 million transactions with a lifetime Gross Merchandise Value (GMV) of EGP 35.29 billion ($705.8 million).

Growth Beyond Core BNPL

ValU’s need for capital is driven by its rapid diversification beyond simple point-of-sale installments. The company has evolved into a multi-product financial platform, a strategy reflected in its 2024 performance:

This expansion has allowed it to outpace the broader market. While Egypt’s consumer finance sector grew 31% in 2024, valU’s business grew by 69%, expanding its market share from 18.5% to a commanding 24%. Its auto finance product, Shift, saw explosive growth of 261% year-over-year, demonstrating its ability to disrupt traditional lending sectors.

Crucially, this growth has been managed with disciplined underwriting. The company maintains a non-performing loan (NPL) ratio of just 0.7% and has been profitable since 2020.

The EFG Hermes Advantage

ValU’s journey is a powerful case study in corporate incubation. Being born within EFG Hermes provided three distinct advantages that standalone startups lack:

1. Expertise: It leveraged EFG Hermes’s deep experience in financial structuring and risk management.
2. Funding Pipeline: The investment banking arm provided a ready-made, efficient mechanism for raising debt through securitization, bypassing the venture capital route.
3. Path to Public Markets: EFG Hermes is one of the region’s most prolific IPO advisors, having managed listings for giants like Saudi Aramco and Fawry. It used this internal expertise to seamlessly guide its own venture to a public listing.

This integrated structure — combining a non-bank lender (valU), an investment bank (EFG Hermes), and now a commercial bank (aiBANK) — creates a powerful flywheel for growth.

The Bottom Line 

ValU’s decision to immediately launch a new, larger securitization program post-IPO is a clear signal of its strategy. The public listing was less about raising primary growth capital and more about creating liquidity for early backers, establishing a public valuation, and enhancing its brand profile.

For day-to-day operations and expansion, the company is sticking to the capital-efficient debt financing model that got it here. By continuously recycling its loan book into fresh capital, valU can fuel its multi-product growth without further diluting the shareholders who just celebrated its successful market debut. It’s a pragmatic approach that suggests a focus on sustainable, disciplined growth, even amidst the excitement of becoming a public company.