Riyadh – Mubasher: MENA-focused shopping and financial services app Tabby has entered into a definitive agreement to acquire Saudi-based digital wallet Tweeq, which is licensed by the Saudi Central Bank (SAMA).
The announcement came during the 24 Fintech flagship event, which is taking place in Riyadh for three days until 5 September 2024, according to a press release.
The agreement will allow Tabby to explore expanding its financial products suite so it includes digital spending accounts, cards, and money management tools in accordance with laws and regulations. Meanwhile, Tweeq will continue to operate independently.
Subject to regulatory approval and the required legal and administrative proceedings, Tweeq will partner with Tabby to expand its services within Tabby’s ecosystem and consumer scale.
CEO and Co-Founder of Tabby, Hosam Arab, said: “Tweeq has made it its mission to meet the financial needs of Saudi Arabia by building the best mobile-first spending account.”
Arab elaborated on the acquisition agreement news by saying: “With Tweeq joining forces with Tabby, we will unlock a whole new suite of financial products designed to empower our customers to do even more with their money when they spend, send or save.”
The agreement, meanwhile, is a significant step towards achieving the goals of Saudi Vision 2030 while contributing to the expansion of digital financial services.
Co-Founder and CEO of Tweeq, Saeed Albuhairi, said: “We are looking forward to merging Tweeq’s offerings into Tabby’s ecosystem so that we can cater to the financial needs of millions of users across the GCC, providing them with an innovative alternative to traditional banking.”
Fintech company Tweeq was founded in 2020 as one of the early electronic money institutions licensed to operate in Saudi Arabia. It offers a spending account that allows customers to spend, send, and manage their money.
Earlier in 2024, Saudi fintech Tabby collaborated with UAE-based traveltech Tumodo to accelerate growth in the UAE travel industry.
In 2023, the regional app raised $58 million in a Series C funding round led by Mubadala Investment Capital, Sequoia Capital India, STV, Arbor Ventures, and Endeavor Catalyst. This was in addition to securing up to $700 million in receivables securitisation from J.P. Morgan at the end of the year.
Tabby also joined forces with the listed Fawaz Abdulaziz Alhokair Company (Cenomi Retail) in a long-term strategic partnership agreement, which marked the first of its kind between a BNPL player and an omnichannel retailer in Saudi Arabia.
In an interview with Mubasher.info during the fintech event, Saudi payments startup EzPay said it is focused on payments transactions through QR codes, payment links, and others.
