Information on the Target

Tabby has emerged as the leading shopping and financial services application in the MENA region, catering to over 14 million users by providing them with tools to manage spending, earn rewards, and save effectively. Through partnerships with over 40,000 global and local brands, including prominent names like Amazon, IKEA, and Samsung, Tabby has fundamentally redefined the consumer finance landscape.

Tweeq, established in 2020, has made significant strides as a pioneering entity in the Saudi fintech sector. As one of the initial electronic money institutions licensed by the Saudi Central Bank (SAMA), Tweeq offers a mobile-first spending account that serves as an innovative alternative to traditional banking services, fostering the transition towards a cashless and digital-first economy.

Industry Overview in Saudi Arabia

The financial technology industry in Saudi Arabia is experiencing rapid growth, driven by governmental support for digital transformation and a determined aim to diversify its economy. In alignment with the Saudi Vision 2030 initiative, the fintech sector is increasingly central to enabling a modern financial system that encourages innovation and enhances financial inclusion.

Regulatory frameworks have been updated to facilitate a conducive environment for fintech companies. The Saudi Central Bank (SAMA) has implemented several measures to promote a robust fintech ecosystem, including the introduction of regulations for electronic money institutions and other financial service providers. This regulatory support, paired with an influx of investments, is expected to accelerate the development of fintech solutions across the Kingdom.

Additionally, a growing appetite for digital financial solutions among Saudi consumers is propelling new fintech startups. As internet penetration rises and smartphone adoption increases, the demand for seamless digital services has surged. This shift in consumer behavior is paving the way for innovative solutions that cater to various financial needs.

With an influx of local and international investors pouring capital into the market, the competition among fintech firms is intensifying. Companies are continuously innovating to differentiate their offerings and capture market share, making Saudi Arabia a promising landscape for fintech growth.

The Rationale Behind the Deal

The acquisition of Tweeq by Tabby signifies a strategic advancement for both companies and the broader Saudi fintech landscape. By integrating Tweeq's advanced digital wallet and money management solutions with its platform, Tabby is poised to expand its product offerings beyond Buy Now Pay Later services. This acquisition not only strengthens Tabby's competitive edge but also offers enhanced financial products to its expanding customer base.

This strategic move aligns with the objectives of the Saudi Vision 2030, positioning Tabby as a key player in advancing the Kingdom's ambition towards becoming a leader in digital finance. By combining forces with Tweeq, Tabby can facilitate a more comprehensive range of financial solutions that cater to the evolving needs of consumers.

Information About the Investor

STV is a prominent investment firm dedicated to supporting innovative entrepreneurs who are transforming industries and generating significant value. With a focus on high-impact ventures in tech and fintech, STV is committed to nurturing companies that have the potential to reshape their sectors. The firm's investment in Tabby at the Series A stage and in Tweeq during its Seed round showcases STV's strategic approach to identifying game-changing companies in the MENA region.

Through its involvement in notable investments, STV aims to contribute to the regional economy by bolstering the growth of companies that prioritize technological advancement and customer-centric solutions. The firm remains actively engaged in supporting the founders of these enterprises as they navigate their growth trajectories and achieve lasting impacts within their industries.

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The acquisition of Tweeq by Tabby represents a significant opportunity for both companies and the Saudi fintech sector. By consolidating their strengths, they not only enhance their market position but also create a more comprehensive financial platform that meets the diverse needs of consumers. The integration of Tweeq's capabilities will likely enable Tabby to expand its customer base and provide innovative solutions that drive customer engagement.

Given the robust growth trajectory of the fintech industry in Saudi Arabia, this transaction could yield substantial returns for investors involved. The increasing demand for digital financial services creates a favorable environment for companies that can adapt and innovate effectively. Tabby's strengthened offerings position it well to capitalize on this momentum.

Moreover, this deal aligns with the strategic vision of Saudi Arabia to foster a dynamic financial sector. The collaboration of two leading entities in the fintech space can spur further innovation, attracting additional investments and potentially accelerating the growth of the digital economy in the region.

In conclusion, the acquisition is not only a milestone for the involved parties but also a significant advancement for the overall fintech ecosystem in Saudi Arabia. As Tabby and Tweeq chart their future together, the impact of this partnership is likely to resonate widely across the region, benefiting consumers and stakeholders alike.

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