Souq.com sells CashU – Wamda

Regional ecommerce site Souq.com has sold its
online payment arm CashU.

In what is known as a ‘management buyout’ the
company was purchased, for an undisclosed amount, by CashU’s
general manager Thaer Suleiman, and the Dubai-based investment
firm Genero
Capital.

Established in 2003 CashU has been operating in
the region as a MENA focused online payment business.

The purchase of the platform, which operates in
Arabic, as well as English, is said to be part of a strategy for
Genero Capital to partner with entrepreneurs in the region. In a
statement, the CEO of Genero Capital Tamer Bazzari said: “This is
the first MBO deal in MENA supported by a financial sponsor and
should encourage more entrepreneurs to consider such a
structure”.

Suleiman, who joined CashU in 2010, also said in
a statement that the plans they have for CashU “are consistent with
most of the region’s Central Banks’ visions of developing a
‘cashless society’.

“With CashU’s 12 years of experience in MENA, we
understand how to build products and offer services that best suit
the buying behaviors of the end users residing in the Arabic
speaking markets.”

CashU was founed in 2003 by ecommerce site
Maktoob (later bought by Yahoo!).  

Speaking to Wamda over email Genero Capital’s vice
president Rushdi Sammakieh said this would be a milestone addition
to their portfolio, one that already includes the mobile payment
business Boloro.

“Cashu plans to transform a large portion of the
unbanked population in the region to use electronic payments to
purchase online goods and services,” Sammakieh told Wamda. “This is
possible through Cashu’s customizable in-house solutions which
speak to the day-to-day financial needs of Arab consumers.”

According
to The National this acquisition will be followed by up to three
deals in 2016.