Valu to Enter Egypt's SME Financing Market by Q3 2026

Valu is heading into an exciting new phase of growth! The company is getting ready to launch a new service for financing small and medium-sized enterprises (SMEs) in Egypt during the third quarter of 2026. This move clearly shows a shift from their usual consumer financing model for individuals to a much broader space within the business financing sector. This isn't just about adding a new product; it's a strategic repositioning for a company that built its growth over the past years on “Buy Now, Pay Later” solutions. Now, Valu is gradually opening its doors to the corporate sector, which is one of the most in-need sectors for financing in the Egyptian market. Walid Hassouna, the company's CEO, believes that Valu's entry into SME financing is part of building a more comprehensive financing platform. This platform will be able to serve both individuals and business owners at the same time, taking advantage of a clear market gap where small businesses often struggle to get quick and flexible financing. The SME sector is a major pillar of the Egyptian economy. It's not just about the number of jobs it creates, but also its role in boosting commercial activity and supply chains. This makes targeting SMEs by fintech companies a step with broader economic implications than just a commercial expansion. Through this new service, Valu aims to get involved in the operational details of businesses. They plan to finance working capital, expansion needs, purchasing, and supply. This will transform Valu from a platform focused on individual consumption into a key player in the business financing ecosystem. This expansion relies on advanced technical infrastructure and an internal credit engine that the company developed to manage risks and evaluate customers. Management sees this as one of the most important elements enabling them to enter a more complex sector compared to consumer financing. Despite the growing size of its financing portfolio, company data indicates that risk indicators have remained within a controllable range. Non-performing loans (NPLs) overdue by more than 90 days were about 1.24% by the end of the first quarter of 2026. This, along with coverage ratios and risk costs, reflects a balance between growth and credit discipline. However, the broader picture reveals that rapid portfolio growth naturally led to an increase in the absolute values of defaults. The company views this as a direct result of expanding activity, not an indicator of deteriorating credit quality, especially since the ratios have remained stable over the years. From 2019 to 2026, non-performing loan ratios moved within a relatively limited range, while total values gradually increased as the company's operations expanded. This reflects a growth pattern based on calculated expansion rather than reckless risk-taking. Looking ahead, Valu faces a dual challenge: maintaining its pace of expansion on one hand, and proving its ability to manage risks in a market more complex than consumer financing on the other. In this context, the company is betting on diversifying its financing products and expanding its customer base. This comes amid rising demand for fast digital financing solutions, both from individuals and small businesses looking for alternatives outside traditional channels. Between this expansion and these risks, Valu is trying to build a new equation that combines growth with discipline in a financing market that doesn't offer much room for experimentation without being tested.