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EFG Hermes inks 2 agreements with Amazon

EFG Hermes inks 2 agreements with Amazon

ArabFinance: valU Consumer Finance, a subsidiary of EFG Hermes Holding (HRHO), has signed a commercial agreement with Amazon for to provide consumer financing services as a method of payment on amazon.eg, according to a press release published on May 16th.

As per the commercial agreement, some of the consumer financing products offered by valU will be available to qualified customers on amazon.eg, where the customers will be given the option to split the total cost of purchases into multiple payments when using valU.

Moreover, EFG Hermes has entered into a transaction agreement with Amazon, upon which Amazon agreed to buy $10 million in EFG Hermes’ global depositary receipts (GDRs).

Under the transaction agreement, Amazon has the option to replace this investment in GDRs with the acquisition of a 4.255% stake in valU at a future date based on valU’s current post-money valuation of $235 million.

“The option will be exercisable prior to or upon the occurrence of a qualified liquidity event at the level of valU, in the form of an independent investment involving third party investors, a sale, or an initial public offering or other listing event, based on the terms and conditions of the transaction agreement,” the release highlighted.

Established in 2017, valU is the first-of-its-kind buy-now-pay-later (BNPL) fintech platform in the Middle East and North Africa (MENA) region, offering a wide range of plans, with more than 5,000 points of sale and over 300 websites.

EFG Hermes is a leading financial services company in Egypt listed on the Egyptian Exchange (EGX), with a presence in 13 countries, including the UAE, Saudi Arabia, Kuwait, Jordan, Oman, and Pakistan.

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