Saudi Arabian buy now, pay later (BNPL) firm Tabby has announced its acquisition of digital wallet provider Tweeq, a significant development in the Kingdom’s fintech landscape. The acquisition, revealed at the 24 Fintech event in Riyadh, involves Tweeq, which is licensed by the Saudi Central Bank, continuing to operate independently under Tabby’s umbrella.
Tabby CEO Hosam Arab highlighted that the acquisition aligns with the company’s strategic vision to expand beyond BNPL services. “We have experienced strong demand for our BNPL offerings, but consumer needs are broader,” Arab stated. He emphasized that integrating Tweeq allows Tabby to address a wider range of financial needs, moving beyond its initial service model.
Serving over 7 million customers in Saudi Arabia, Tabby views the acquisition as a strategic advantage, providing Tweeq with access to a substantial customer base that would have been challenging to reach independently. Tweeq, founded in 2020, is one of the early electronic money institutions in Saudi Arabia, offering digital spending accounts that provide users with enhanced control over their finances.
The acquisition supports Saudi Arabia’s National Fintech Strategy, part of Vision 2030’s Financial Sector Development Program, which aims to establish 525 fintech companies by 2030. This initiative is expected to create 18,000 jobs and contribute $3.5 billion to the Saudi economy.
Arab mentioned that while Tabby will continue to collaborate with other financial institutions to offer diverse services, its platform will serve as the central hub for these offerings. He also noted that while the acquisition may not immediately impact Tabby’s market valuation, it will bolster the company’s financial stability and consumer offerings.
Tabby, which recently relocated its headquarters from the UAE to Saudi Arabia and achieved unicorn status, is focusing on deepening its market presence and enhancing financial inclusion through expanded services. The company is also preparing for an initial public offering (IPO) and is confident in its current cash flow, with no immediate plans for additional funding.
