The world’s most expensive fintech company landed in the Middle East

The world’s most expensive fintech company landed in the Middle East

Stripe, Silicon Valley’s most expensive fintech, has just decided to choose Dubai as a springboard to access the Middle East and North Africa markets.

Stripe’s co-founder John Collison is now one of the youngest self-made billionaires in the world. Photo: AFP

Stripe’s decision, a few weeks after its recent fundraising round, helped the startup’s capitalization rise to $ 95 billion, making Stripe one of the world’s most expensive private fintech firms.

“The opportunities for startups in the United Arab Emirates (UAE) are enormous,” said Matt Henderson, Stripe’s director of European, Middle East, and Africa regional sales. March 5 on CNBC. “So is the opportunity for Strip,” added Matt Henderson.

Stripe was founded by two Irish brothers in 2010 to compete directly with the payment giants such as PayPal, Adyen, and Square. The advantage of a payment platform developed by Stripe is that it allows businesses to make payments online.

Between the ages of 30 and 32, Patrick and John Collison – the two co-founders of Stripe – are determined to have a fortune of about $ 11 billion each.

Explaining the decision to attack the UAE market, Mr. Henderson said that the UAE has a great advantage when it has established a developed digital economy and online businesses in the UAE can use Stripe to make payments. online.

Gym management software company Glofox, a global customer of Stripe, commented that Stripe’s launch in the UAE “could give a boost to global brands like Glofox to develop products and services. suitable for businesses in this region “.

Analysts said that the Dubai market opens up great opportunities for fintech companies because there are many businesses that have not gone global yet and online payment is a useful solution.

The anti-epidemic Covid-19 blockade measures in the world in recent years have helped e-commerce boom and the UAE market is no exception. According to the International Trade Administration of the US Department of Commerce, the size of the UAE e-commerce market is estimated at $ 27.1 billion by 2022.

After the deal was valued three times less than a year ago, Stripe is now arguably the most expensive private company to “cross the border” of Silicon Valley. Stripe even more expensive than Uber and Facebook before the two companies listed.

Former Bank of England Governor Mark Carney also “sits” on the Strip Board of Directors, along with Christa Davies, CFO of Aon Insurance. Meanwhile, billionaire founder of electric car company Tesla, Mr. Elon Musk and billionaire Peter Thiel also soon became “big hands” investors of Stripe.

Faced with rumors that Stripe is going to be listed, Mr Henderson said: “We are just focusing on a growth model, an investment model, and a customer service.” Representative Stripe added, this startup is aiming to “conserve its own resources, and develop automated products and services as much as possible”.

Stripe’s workforce plan for the UAE market has not yet been clarified, but the fintech company is said to be pursuing a capital-efficient business model. “I think that model helped us a lot,” said Stripe’s Sales Manager.

“We have already recorded an investment of more than $ 600 million in UAE startups,” said Henderson. “The UAE converges talent, investment capital flows, and entrepreneurship spirit. Therefore, there will be many emerging technology companies operating in this market,” Stripe representative assessed. The proof is that Dubai-based ride-hailing app Careem was acquired by Uber for $ 3.1 billion in 2019. Anghami, the legal music streaming platform in the Middle East and North Africa, It also announced that it would become the first UAE technology company to list on the US Nasdaq stock exchange.