Tabby, the prominent buy now, pay later (BNPL) platform headquartered in Riyadh, has officially announced the acquisition of Tweeq, a Saudi-based mobile wallet. The financial terms of the transaction remain undisclosed. This marks Tabby’s first acquisition since its launch and is a significant move for the company, which reached a valuation of $1.5 billion during its latest financing round in 2023.
The acquisition is strategically aimed at expanding Tabby’s presence in Saudi Arabia, a key market where the company already has a substantial user base. Over 80% of Tabby’s 14 million users are located in Saudi Arabia, making the country a critical part of its operations. With this deal, Tabby will now be able to offer a broader range of digital banking services, further deepening its footprint in the region.
The company, initially launched in Dubai, has been experiencing rapid growth across the Gulf Cooperation Council (GCC) region. Besides Saudi Arabia, Tabby also operates in the United Arab Emirates (UAE), Bahrain, Kuwait, and Qatar. It currently offers its users in the UAE a Visa card that enables installment-based purchases. Customers can split their payments into four installments at any retailer where Visa is accepted. This flexible payment solution has been one of the key factors behind Tabby’s growing popularity.
With the acquisition of Tweeq, Tabby is poised to expand its offerings beyond its core BNPL services. Tweeq, a licensed Electronic Money Institution (EMI) under the Saudi Central Bank (SAMA), offers a range of digital wallet and banking solutions. The mobile wallet provides users with a spending account, paired with a Mastercard debit card that can be used for both online and in-store transactions. Through Tweeq’s app, users are also able to transfer funds to other mobile wallets or bank accounts within Saudi Arabia, making it a comprehensive financial tool for daily transactions.
Tweeq, founded in 2020 by Saeed Albuhairi, Abdulaziz Almalki, and Mohammad Fouad, has rapidly made a name for itself in Saudi Arabia’s fintech scene. Despite being relatively young, the company has raised over $1 million in funding from Saudi Technology Ventures (STV) and Raed Ventures—both early backers of Tabby as well. This shared investment history between the two companies further underscores the strategic nature of the acquisition.
As part of the deal, Tabby will integrate Tweeq’s 50+ employees into its operational structure. This includes Tweeq’s management team, which will continue to play a role in shaping the future of the company under Tabby’s umbrella. Tabby has made it clear that existing Tweeq users will continue to have full access to their accounts and cards. The plan is to fold Tweeq’s services into Tabby’s ecosystem without disrupting the customer experience. Over time, this integration will allow Tabby to offer a more comprehensive suite of financial services to its users across the GCC region.
The acquisition also signals Tabby’s intent to further push into digital banking, a sector that is experiencing rapid growth in the Middle East. By incorporating Tweeq’s mobile wallet and money management tools, Tabby is positioning itself as more than just a BNPL provider. It aims to become a holistic financial services platform that caters to a variety of consumer needs. This move aligns with the broader trend of fintech companies offering banking-like services to create a one-stop-shop for users looking to manage their finances digitally.
In a statement, Hosam Arab, co-founder and CEO of Tabby, emphasized the importance of this acquisition for the company’s future growth. “Tweeq has made it its mission to meet the financial needs of Saudi Arabia by building the best mobile-first spending account. 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,” said Arab.
Saeed Albuhairi, co-founder and CEO of Tweeq, also expressed optimism about the partnership, stating, “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.”
Saudi Technology Ventures (STV), one of the major backers of both companies, described the acquisition as a strategic milestone for Saudi Arabia’s fintech ecosystem. “By integrating Tweeq’s digital wallet and money management tools into its platform, Tabby is set to offer a more holistic suite of financial products beyond buy now pay later,” the venture capital firm said in a statement.
Looking forward, the acquisition will allow Tabby to not only solidify its position in the BNPL market but also to make inroads into digital banking services. With Saudi Arabia aiming to promote a cashless society and boost financial inclusion, this acquisition positions Tabby as a key player in achieving these national goals. As Tabby continues to grow its user base and expand its range of services, the company is set to become one of the leading fintech platforms in the region.
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