Global payments giant PayPal has announced a new $100m commitment aimed at investing in startups across the Middle East and Africa. The initiative will focus on acquiring minority equity stakes, potential acquisitions, and providing further funding through its corporate venture capital arm, PayPal Ventures.
The move signals a deeper strategic push into the region for PayPal, building on its existing portfolio of fintech investments which includes South Africa’s Stitch, Egypt’s Paymob, and Tabby in the UAE.
What it involves
The $100m will be deployed through a combination of direct investment and support from its CVC arm. The company stated the goal is to help local entrepreneurs expand into new markets.
“We’re investing in the solutions that will help entrepreneurs scale faster [and] expand their reach beyond borders,” said Alex Chriss, President and CEO of PayPal.
The announcement comes five months after PayPal opened its first regional hub in Dubai, established to connect businesses in the region to its global payment infrastructure.
Building on existing bets
PayPal Ventures has been an active, if infrequent, investor in the region. Its participation in the recent funding rounds for high-profile fintechs like Stitch and Paymob has positioned it as a strategic backer for companies building financial infrastructure.
“This commitment underscores our dedication to expanding PayPal’s presence in the Middle East and Africa,” said Otto Williams, PayPal’s Senior VP and Regional Head. “Our focus is to build stronger connections between local businesses and the global marketplace.”
The new capital allocation suggests a more formal and aggressive strategy to secure a foothold in one of the world’s fastest-growing digital commerce markets. In April, portfolio company Stitch, an open banking and payments API fintech, raised $55m in a funding round where PayPal Ventures was a follow-on investor. The move to dedicate a specific $100m pot for the region could provide a crucial new source of capital for growth-stage startups.