Latest news with #QEDInvestors'
Time of India
3 days ago
- Business
- Time of India
Regulators realising fintechs are here to stay: QED's Nigel Morris
Fintechs are no longer scrappy outsiders. They're scaling faster than traditional players and increasingly, regulators are recognising them as a permanent fixture in the financial services industry, QED Investors' cofounder Nigel Morris told us. In an exclusive interview during his annual visit to India, Morris said fintechs are beginning to dominate categories such as earned wage access, money transfers, and neobanking. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Fintechs are no longer scrappy outsiders in the financial world; they are scaling faster than traditional players, dominating high-growth segments and increasingly being recognised by regulators as a permanent feature in the financial services industry, according to QED Investors cofounder Nigel Morris 'Regulators are now internalising that fintech is here to stay,' Morris told ET in an exclusive interaction during his annual India visit. Fintechs have a role to play in the future of how financial services are delivered, he visit comes at a time when India's fintech sector is navigating tighter regulatory oversight, particularly around unsecured lending and digital compliance. He sees this not as a setback, but as a necessary phase. 'It's a natural course laying the groundwork for the next wave of innovation.'Referring to the recently released QED–BCG Global Fintech Report, Morris said, fintechs are not only growing faster than incumbents, they're starting to dominate key categories. 'Earned wage access (allowing employees to access a part of their wages before the payday) is a great example—Refyne in India operates in a space where there isn't a single incumbent,' he said. 'In money transfers, it used to be Western Union, now it's Wise and Remitly. For buy now, pay later, Klarna and Affirm are dominating, not banks. In neo-banking, look at Nubank, Monzo and Chime. What we're seeing is that incumbents, either by default or by design, are simply not playing in these spaces.'It would be 'very interesting' to see how India's landscape evolves, whether the legacy players step up or continue to lag behind, he said. 'Their (banks') skills might not be as relevant; they've got other things on their mind.'A key trend QED is tracking is how artificial intelligence is reshaping financial services from underwriting to product delivery. 'Fintechs are adopting AI at a much faster rate than incumbents. That's not surprising,' said Morris. 'They're more digital, more tech-centric and faster in how they move.'This tech-led agility, he said, is giving fintechs an edge in product innovation, risk assessment and consumer engagement, while legacy institutions are still weighed down by infrastructure and regulatory US-based fund plans to deploy $250–300 million in early- and growth-stage startups across India and the Asia-Pacific region. Armed with a $925 million fund raised in 2023, QED is eyeing investments across Indonesia, Singapore, Japan and other APAC the past five years, the fintech-focused VC firm has invested roughly $220 million in Asia. Its India portfolio includes early bets in neo-banking platform Jupiter, credit card sourcing platform OneCard, financial infrastructure startup Upswing and Efficient Capital Labs, which offers financing solutions for SaaS companies. In December 2024, QED led a $25 million funding round in OneCard While India's fintech sector has faced increasing regulatory scrutiny, especially around NBFCs (non-banking financial companies) and unsecured lending, Morris doesn't see this as a deterrent. 'The regulators stepped in with a cautionary stance—rightly so,' he said. 'They said we have to really think about AML, KYC and about a little bit more scrutiny to make sure that the banks that partner with the fintechs are living up to the responsibilities that they have. From there, move to a new equilibrium… I think that's a natural cycle.'QED Asia head Sandeep Patil, who oversees India investments, echoed the view. 'I'm not turning a blind eye to what's happened. Yes, regulations have slowed lending and caused short-term pain. But we're far more optimistic about the long term,' he reset in the fintech market has affected funding in the sector. Cred is in talks to raise fresh funds at an around $4 billion valuation—down from $6.4 billion in 2021, as reported by ET on April 14 . QED portfolio firm Klarna of Sweden dropped from $46 billion to $6.7 billion before recovering to a targeted $15 billion ahead of IPO . Stripe went from $95 billion to $50 billion before a tender offer lifted its valuation to $91.5 billion.'The rise and fall played out over just two and a half years,' Morris said. 'But in the last year, things have been relatively stable.'He noted that public fintechs traded at 4–5x revenue pre-Covid, surged to 20x during the digital wave, and are now returning to more rational however, continues to buck that trend. 'India benefits from a roaring wind at its back, strong GDP growth and a different economic cycle compared to the US, UK, or Latin America,' he bullish on India, QED remains measured on certain sub-sectors like neo-banking.'Many haven't demonstrated meaningful product engagement or cross-sell success,' said Patil. 'They either don't have a wide enough product suite, or they haven't had enough traction on the core banking product. Then you're just another account inside someone's app—and the story doesn't go anywhere.'Still, Morris believes that the good fintechs will earn regulatory trust and potentially, banking licences. 'In the long run, I believe some of them will end up with licences at different speeds in different markets,' he said. 'But there's still room for strong partnerships between good fintechs and good banks. That's the opportunity.'Morris has long pushed back against the hypergrowth-at-all-costs mindset that defined much of the past decade's startup boom. 'I've always railed against the model of blitzscaling in financial services—the idea that you acquire a load of customers, lose money on every one of them, and figure out the model later. I've never believed in that,' he said. 'We are incredibly meticulous and focused on unit economics.'In the Indian context, that model faces even more pressure. 'The cost to acquire it is really low. But the ARPU (average revenue per user) is equally low,' he said. 'So, we're playing a different economic game. In the end, how those two net off is critical. You're dealing with a much larger customer base with thinner economics per user. The bet is on how big they can get, who they can partner with, and what else they can sell and at what rate.'
Zawya
19-03-2025
- Business
- Zawya
UAE's NymCard secures $33mln funding to drive financial innovation in MENA
UAE – Dubai-based NymCard, MENA's trusted partner in embedded finance, has secured $33 million in its latest Series B funding round, led by QED Investors. This marks QED Investors' most significant investment in the region and the first one in the Gulf, according to a press release. The round witnessed the participation of existing investors, including Lunate, Dubai Future District Fund, Mashreq Bank, Knollwood, Reciprocal, FJLabs, and Endeavor. NymCard will use the funding to expand its business in over 10 markets in the MENA region, reinforcing its payment infrastructure solutions to serve banks, enterprises, fintechs, and telecom providers. Omar Onsi, CEO of NymCard, commented: 'With the backing of our investors, we will continue pushing the boundaries of payments and embedded finance, ensuring our clients have access to best-in-class payment infrastructure solutions backed up by solid program management capabilities.' Gbenga Ajayi, QED Investors' partner, Head of Middle East and Africa, said: "By providing out-of-the-box card issuing and embedded finance solutions, NymCard is bridging the fintech gap and empowering businesses with the infrastructure they need to innovate.' 'With its API-first approach, NymCard is expanding financial access for startups and enterprises, driving SME growth, and strengthening MENA's digital economy,' Ajayi added. To date, NymCard has partnered with more than 50 banks, fintechs, and enterprises, delivering personalised financial offerings across the region. NymCard aligns with Saudi Vision 2030 which supports the Kingdom's shift toward a cashless economy. As for the UAE, NymCard plays a key role as a licensed entity under the Central Bank of the UAE (CBUAE). In Egypt, the company provides the flexibility and security needed for businesses to bolster financial inclusion and innovation. Source: Mubasher
Mid East Info
19-03-2025
- Business
- Mid East Info
QED Investors Leads $33M Investment in NymCard, Strengthening MENA's Payments Infrastructure - Middle East Business News and Information
UAE: NymCard , the only embedded finance platform operating across 10+ countries in MENA, has secured $33 million in its latest Series B funding round, led by QED Investors . This marks QED Investors' most significant investment in the region – and the first time leading a deal in the Gulf Cooperation Council — underscoring the growing global confidence in MENA's expanding fintech ecosystem. The round saw strong backing from existing investors including Lunate, Dubai Future District Fund, Mashreq Bank, Knollwood, Reciprocal, FJLabs, Shorooq and Endeavor, alongside new participation from Oraseya Capital, further validating NymCard's role in powering the future of embedded finance in the region. With this investment, NymCard is deepening its presence across 10+ markets in MENA, strengthening its payment infrastructure solutions to better serve banks, enterprises, fintechs, telecom providers, and more across its three core verticals: Card Issuing Processing, Embedded Lending, and Money movement. NymCard's nCore platform is the only issuer processor in MENA that fully owns its processing and switching technology, rather than licensing from third parties. This localized, full-stack infrastructure gives clients a competitive edge, enabling them to design, launch, and scale payment programs with unmatched flexibility. Built on modular APIs, nCore allows businesses to seamlessly manage card issuance, transaction processing, lending infrastructure, and real-time payments—all within a fully integrated financial stack that ensures speed, control, and efficiency. 'This investment is a testament to the strength of our technology and our commitment to enabling financial innovation in MENA,' said Omar Onsi, CEO of NymCard . 'With the backing of our investors, we will continue pushing the boundaries of payments and embedded finance, ensuring our clients have access to best-in-class payment infrastructure solutions backed up by solid program management capabilities. We are especially excited to welcome QED Investors on this journey, given their unrivaled experience in fintech across multiple geographies. Their expertise will be invaluable as we further expand our impact in the region.' To date, NymCard has partnered with 50+ banks, fintechs, and enterprises, delivering personalized financial offerings across the region. In Saudi Arabia, NymCard aligns with Vision 2030, supporting the country's shift toward a cashless economy. In the UAE, where the focus is on digitizing money movement, NymCard plays a key role as a licensed entity under the Central Bank of the UAE (CBUAE). In Egypt, with its thriving fintech ecosystem, NymCard provides the flexibility and security needed for businesses to drive financial inclusion and innovation. ' NymCard is a true testament to the r ipe and flourishing ecosystem we are seeing across MENA. ' shared Gbenga Ajayi, QED Investors' partner, Head of Middle East and Africa . 'By providing out-of-the-box card issuing and embedded finance solutions, NymCard is bridging the fintech gap and empowering businesses with the infrastructure they need to innovate. With its API-first approach, NymCard is expanding financial access for startups and enterprises, driving SME growth, and strengthening MENA's digital economy.' 'NymCard has firmly established itself as the market leader in fintech infrastructure across MENA, with deep customer stickiness and an expanding product suite that serves a broad range of industries. Its proprietary technology, regulatory positioning, and ability to scale across diverse markets make it a critical enabler of financial services innovation in the region. We are excited to support Omar and his exceptional team as they continue to redefine embedded finance in MENA' added Julien Plouzeau, Senior Partner at Oraseya Capita l. About QED Investors QED Investors is a global leading venture capital firm based in Alexandria, Va. Founded by Nigel Morris and Frank Rotman in 2007, QED Investors is focused on investing in disruptive financial services companies worldwide. QED Investors is dedicated to building great businesses and uses a unique, hands-on approach that leverages its partners' decades of entrepreneurial and operational experience, helping companies achieve breakthrough growth. Notable investments include AvidXchange, Betterfly, Bitso, Caribou, ClearScore, Creditas, Credit Karma, Current, Flywire, Kavak, Klarna, Konfio, Loft, Mission Lane, Nubank, QuintoAndar, Remitly, SoFi, Wagestream and Wayflyer. About NymCard: NymCard is the only embedded finance platform in MENA with a full-stack, API-first payment infrastructure for banks, fintechs, enterprises, and telecom providers. Operating across 10+ countries, NymCard enables seamless card issuance, transaction processing, digital lending, and real-time money movement through its proprietary nCore platform. As the only issuer processor in MENA that fully owns its processing and switching technology, NymCard delivers unmatched speed, control, and flexibility, eliminating reliance on third-party providers. Licensed by the Central Bank of the UAE, NymCard ensures regulatory compliance, empowering financial institutions to scale and innovate with confidence.
Zawya
19-03-2025
- Business
- Zawya
QED Investors leads $33mln investment in NymCard, strengthening MENA's payments infrastructure
Dubai, United Arab Emirates – NymCard, the only embedded finance platform operating across 10+ countries in MENA, has secured $33 million in its latest Series B funding round, led by QED Investors. This marks QED Investors' most significant investment in the region and the first one in the Gulf, underscoring the growing global confidence in MENA's expanding fintech ecosystem. The round saw strong backing from existing investors including Lunate, Dubai Future District Fund, Mashreq Bank, Knollwood, Reciprocal, FJLabs, and Endeavor, with the region's leading investment institution, Shorooq alongside new participation from Oraseya Capital, further validating NymCard's role in powering the future of embedded finance in the region. With this investment, NymCard is deepening its presence across 10+ markets in MENA, strengthening its payment infrastructure solutions to better serve banks, enterprises, fintechs, telecom providers, and more across its three core verticals: Card Issuing Processing, Embedded Lending, and Money movement. NymCard's nCore platform is the only issuer processor in MENA that fully owns its processing and switching technology, rather than licensing from third parties. This localized, full-stack infrastructure gives clients a competitive edge, enabling them to design, launch, and scale payment programs with unmatched flexibility. Built on modular APIs, nCore allows businesses to seamlessly manage card issuance, transaction processing, lending infrastructure, and real-time payments—all within a fully integrated financial stack that ensures speed, control, and efficiency. 'This investment is a testament to the strength of our technology and our commitment to enabling financial innovation in MENA,' said Omar Onsi, CEO of NymCard. 'With the backing of our investors, we will continue pushing the boundaries of payments and embedded finance, ensuring our clients have access to best-in-class payment infrastructure solutions backed up by solid program management capabilities. We are especially excited to welcome QED Investors on this journey, given their unrivaled experience in fintech across multiple geographies. Their expertise will be invaluable as we further expand our impact in the region.' To date, NymCard has partnered with 50+ banks, fintechs, and enterprises, delivering personalized financial offerings across the region. In Saudi Arabia, NymCard aligns with Vision 2030, supporting the country's shift toward a cashless economy. In the UAE, where the focus is on digitizing money movement, NymCard plays a key role as a licensed entity under the Central Bank of the UAE (CBUAE). In Egypt, with its thriving fintech ecosystem, NymCard provides the flexibility and security needed for businesses to drive financial inclusion and innovation. 'NymCard is a true testament to the ripe and flourishing ecosystem we are seeing across MENA. " shared Gbenga Ajayi, QED Investors' partner, Head of Middle East and Africa. "By providing out-of-the-box card issuing and embedded finance solutions, NymCard is bridging the fintech gap and empowering businesses with the infrastructure they need to innovate. With its API-first approach, NymCard is expanding financial access for startups and enterprises, driving SME growth, and strengthening MENA's digital economy.' 'NymCard has firmly established itself as the market leader in fintech infrastructure across MENA, with deep customer stickiness and an expanding product suite that serves a broad range of industries. Its proprietary technology, regulatory positioning, and ability to scale across diverse markets make it a critical enabler of financial services innovation in the region. We are excited to support Omar and his exceptional team as they continue to redefine embedded finance in MENA' added Julien Plouzeau, Senior Partner at Oraseya Capital. For more information, visit or follow NymCard on LinkedIn. About QED Investors QED Investors is a global leading venture capital firm based in Alexandria, Va. Founded by Nigel Morris and Frank Rotman in 2007, QED Investors is focused on investing in disruptive financial services companies worldwide. QED Investors is dedicated to building great businesses and uses a unique, hands-on approach that leverages its partners' decades of entrepreneurial and operational experience, helping companies achieve breakthrough growth. Notable investments include AvidXchange, Betterfly, Bitso, Caribou, ClearScore, Creditas, Credit Karma, Current, Flywire, Kavak, Klarna, Konfio, Loft, Mission Lane, Nubank, QuintoAndar, Remitly, SoFi, Wagestream and Wayflyer. Learn more at About NymCard NymCard is the only embedded finance platform in MENA with a full-stack, API-first payment infrastructure for banks, fintechs, enterprises, and telecom providers. Operating across 10+ countries, NymCard enables seamless card issuance, transaction processing, digital lending, and real-time money movement through its proprietary nCore platform. As the only issuer processor in MENA that fully owns its processing and switching technology, NymCard delivers unmatched speed, control, and flexibility, eliminating reliance on third-party providers. Licensed by the Central Bank of the UAE, NymCard ensures regulatory compliance, empowering financial institutions to scale and innovate with confidence. For more information, visit or follow NymCard on LinkedIn. About Shorooq Founded in 2017, Shorooq is a multi-dimensional investment firm. Our venture capital and credit practice invests in the most innovative technology companies across the MENA region and beyond. We have built deep sectoral expertise in fintech, platforms, software, and deep tech. Shorooq has backed category leaders such as Pure Harvest Smart Farms, Nymcard, Tamara, Sarwa, Lean Technologies, TruKKer, Mozn and Lendo. Shorooq was built on the values of building with founders and identifying attractive returns for investors. We pride ourselves on a local presence across the UAE, Saudi Arabia, Egypt and Korea. Visit us at Shorooq refers to a group of companies that are affiliates of each other and which operate under this business name, of which Shorooq Partners Ltd (regulated by the ADGM Financial Services Regulatory Authority FSRA FSP: 190004 as a category 3C Fund Manager) is a member. Media Contacts: Tarek Fouad Chief Marketing Officer, Shorooq Shorooq Group Press: press@ Direct: tfouad@
