TLDR:
- Saudi Fintech unicorn Tabby acquires startup Tweeq, sparking interest from VCs.
- Saudi Arabia’s emerging startup market shows promise for investment opportunities.
Saudi Fintech unicorn Tabby made headlines by acquiring startup Tweeq in a move that has piqued the interest of venture capitalists eyeing investment opportunities in the kingdom. The acquisition, which involves Tabby purchasing the digital-wallet operator, signals growing maturity in Saudi Arabia’s startup market, offering VCs potential strategies for exiting their investments. This development was highlighted at the 24 Fintech conference in Riyadh, where investors discussed the significance of startup ecosystems and the role of startup exits in catalyzing new generations of angel investors. Saudi Arabia has seen substantial growth in its VC market, raising over $400 million in funds and surpassing the UAE as the top destination for VC investment in the Middle East. The country’s first local fintech firm to go public, Rasan Information Technology Co., saw success with its online insurance platforms and a significant increase in share price post IPO. Despite historically being overshadowed by the UAE in terms of venture market advancement, Saudi Arabia is starting to catch up in M&A deals, with a predicted surge in exit activity within the next 2-3 years. Local investments from funds like STV and Sanabil, coupled with the government’s efforts to diversify the economy, have provided a boost to Saudi startups. Tabby, a fintech offering buy-now-pay-later solutions, plans to go public on the Saudi stock exchange, showcasing the kingdom’s potential for startup growth and investment opportunities.
