When valU debuted on the Egyptian Exchange (EGX) in June 2025, it marked more than the listing of a consumer finance company. Its unconventional route to the public market challenged assumptions about how technology companies can access capital in Egypt and highlighted the evolving relationship between startups, regulators, and public markets.
Those themes were explored during a fireside chat hosted by the American Chamber of Commerce in Egypt’s Entrepreneurship and Innovation Committee, in collaboration with the MIT Kuo Sharper Center for Prosperity and Entrepreneurship (MIT KSC), titled The Road to IPO: Navigating Policy, Regulation, and Market Readiness. The discussion featured valU Founder and CEO Walid Hassouna alongside Dr. Dina H. Sherif, Executive Director of MIT KSC.
From banking to fintech
Before founding valU, Hassouna spent 16 years in banking, where he identified inefficiencies in Egypt’s consumer lending market.
“When we launched, obtaining consumer credit could take up to 21 days,” he said. “We wanted to reduce that process to 20 minutes.”
Founded in 2017 within EFG Holding, valU developed digital underwriting models that combined credit bureau data, national identification records, and alternative data sources to accelerate lending decisions. The model helped position the company among Egypt’s leading consumer finance platforms as demand for digital financial services expanded.
Rethinking the IPO
Rather than pursuing a conventional initial public offering, valU entered the market through an in-kind dividend distribution, with EFG Holding distributing part of its stake directly to shareholders.
“It was the first time this structure had been implemented in Egypt,” Hassouna said.
The transaction required close coordination with both the Financial Regulatory Authority (FRA) and the Egyptian Exchange. Unlike a traditional IPO roadshow aimed at attracting new investors, management found itself persuading existing shareholders to retain their shares.
“We weren’t meeting new investors,” Hassouna recalled. “We were meeting existing shareholders and telling them not to sell the company at EGP 0.77 per share because we believed it was worth EGP 7.4 per share.”
For Egypt’s startup ecosystem, the listing demonstrated that alternative routes to public markets are possible when regulators and issuers are willing to innovate.
Regulation and market development
Hassouna argued that regulatory reform has been instrumental in enabling the country’s fintech growth. Digital onboarding, electronic contracting, and broader digital financial services have transformed how consumers interact with financial institutions, while providing fintech companies with greater room to scale.
He also credited regulators with recognizing the importance of creating viable exit pathways for technology companies.
“I think they wanted to demonstrate that Egypt’s stock exchange could serve as an exit route for technology companies,” he said.
According to Hassouna, Egypt’s regulated consumer finance market has expanded from roughly $200 million in 2020 to about $2 billion today, reflecting both regulatory progress and growing consumer adoption.
From disruption to institution
Hassouna also reflected on how the relationship between startups and regulators has evolved as Egypt’s innovation ecosystem has matured.
“When we started, our philosophy was always to ask for forgiveness,” he said, describing how early fintech entrepreneurs often operated in areas where regulation had yet to catch up with innovation.
Today, as valU operates as a listed company, governance and regulatory compliance have become central to its growth strategy—a transition that mirrors the broader evolution of Egypt’s startup ecosystem from disruption toward institutionalization.
Looking beyond Egypt
The company’s next phase is increasingly regional. While valU previously explored opportunities across Sub-Saharan Africa, it is now prioritizing markets with regulatory environments more closely aligned with Egypt’s. Jordan has already become a strategic market, while Iraq is viewed as a significant long-term opportunity.
Looking ahead, the company plans to expand its merchant financing business, pursue additional financial licenses, explore digital banking opportunities, strengthen its presence in Jordan, and enter at least one new market.
As Egypt’s technology sector matures, conversations around entrepreneurship are increasingly shifting beyond product innovation toward regulation, governance, capital markets, and regional expansion. In that context, valU’s listing represents more than a corporate milestone—it offers an example of how Egypt’s next generation of technology companies could access public markets while helping deepen the country’s innovation economy.
