RIYADH: Saudi buy now, pay later firm Tabby has entered into a definitive agreement to acquire digital wallet provider Tweeq, marking a key development in the Kingdom’s fintech sector.
Announced during the 24 Fintech event in Riyadh, Tabby revealed that Tweeq, licensed by the Saudi Central Bank, will continue to operate independently following the acquisition.
In an interview with Arab News during the conference, Hosam Arab, CEO of Tabby, emphasized that the acquisition of Tweeq is a strategic move to broaden the company’s offerings beyond its core BNPL services.
“We have really grown and seen extremely strong demand and appetite from the consumer for what we have offered. But we believe that the consumer needs are a lot broader and a lot wider,” he said.
“Tweeq’s acquisition really helps us to make the next step in our journey of starting to offer more than just a buy now, pay later solution and really getting into the financial needs of our everyday consumer,” Arab added.
Currently serving over 7 million customers in Saudi Arabia, Tabby sees the integration with its new purchase as a significant advantage for both companies.
“Tweeq benefits from access to that platform, access to that customer base, which otherwise would have been very difficult to obtain access to,” Arab said.
Founded in 2020, Tweeq is one of the earliest electronic money institutions licensed to operate in Saudi Arabia, offering customers an alternative to traditional banking through its digital spending account, which provides enhanced control and ease.
The acquisition of Tweeq by Tabby aligns with Saudi Arabia’s broader objectives under the National Fintech Strategy, a key component of Vision 2030’s Financial Sector Development Program.
This initiative targets the establishment of 525 fintech companies by 2030 to create 18,000 jobs and contribute $3.5 billion to the Saudi economy.
Arab explained that while Tabby will continue to team up with other companies to manage savings and investments, the company’s platform will serve as the gateway for these services.
“We would work with other licensed financial institutions in the markets as partners that are focused on these types of products and have expertise in these sorts of products to be able to offer our customers sustainably safe solutions. However, what we will be able to provide is that platform from which these services are going to be available,” he said.
He added that Tabby is still considering integrating Tweeq and rebranding it under the BNPL giant.
When asked about the impact of the acquisition on Tabby’s market cap, Arab replied: “I believe it’s less around the valuation of the business but more about the sustainability and the financial stability of Tabby as a business. And that’s what gave SAMA, the regulator, a lot more comfort in approving a transaction like this one.”
He added that although the acquisition will not immediately impact the company’s valuation, the resulting benefits to consumers will be crucial in strengthening Tabby’s market position.
Arab confirmed that the company has reached profitability, an important milestone ahead of its planned initial public offering.
He also expressed confidence in the company’s cash flow, indicating that Tabby is not actively seeking additional funding in the near future.
Arab highlighted the significant growth potential within the Gulf, driven by a strong tradition of well-performing banks and a consumer base eager for financial innovation.
He further clarified that the focus for Tabby is not on expanding beyond the region but on deepening its presence in existing markets. He added that these markets offer ample opportunities to enhance financial inclusion by expanding into additional services.
As one of the region’s leading BNPL providers, Tabby relocated its headquarters from the UAE to Saudi Arabia in 2023. Shortly after, the firm secured over $200 million in funding, achieving unicorn status.
