HyperPay, a FinTech start-up in Saudi Arabia, raised 138 million riyals ($36.8m) in its latest funding round that will help the company expand into new markets.
The funding round was led by global payments processor MasterCard with investment from independent alternative investment manager Amwal Capital Partners and AB Ventures, the corporate venture capital arm of Amman-based Arab Bank.
This latest round will support HyperPay’s regional expansion efforts, broadening its market to Egypt, Qatar and Oman, the company said in a statement. It will also help the FinTech to grow its tech team, invest in product research and development and introduce new payment technology solutions.
Muhannad Ebwini, founder and chief executive of HyperPay, said of the new investors: “We are confident of the value-add they bring to our company to achieve its long-term growth strategy. This successful funding round is a testament of the investors' interest for the payments sector in Saudi Arabia and the GCC as a whole and its attractive long-term perspectives.”
The FinTech industry is booming worldwide as the Covid-19 pandemic prompts a permanent shift in spending habits and as users embrace online shopping and payments.
Globally, FinTech funding surged 68 per cent annually to $210 billion last year, with a record 5,684 deals signed through mergers and acquisitions, private equity and venture capital last year, a report by consultancy firm KPMG showed in March.
In the Middle East and North Africa, FinTech start-ups closed more than 100 deals in 2021, research company Magnitt said. FinTech and e-commerce together constituted a third of all deals closed across the Mena region.
The proceeds from the new funding round will be directed towards “creating innovative solutions that will redefine the future of cashless payments in the Mena region”, Mr Ebwini said.
“They will help us accelerate our growth beyond payments and allow us to deliver a wide array of products. We have earned our reputation by being quick to respond to the dynamic needs of our partners.
Founded in 2014, HyperPay, which has its headquarters in Riyadh, has regional offices in various cities such as Dubai, Cairo and Amman. Currently, it serves more than 5,000 merchants across seven countries. Some of its services include payment processing, risk and fraud management and monitoring financial and invoicing systems.
Its partnership with MasterCard will help the company expand beyond payments to “deliver a complete suite of financial products that meet the evolving needs of its customers across all verticals”, it said.