Riyadh Tweeq’s FinTech platform, which allows users to make payments through its app, has raised additional capital to expand its operations in Saudi Arabia and the wider MENA region.
The latest round of funding, which will also help the start-up develop its product, was led by Saudi venture capital firm STV and Raed Ventures, Tweeq said on Monday.
He did not disclose the amount raised, but said it was a seven-figure investment.
âTweeq aims to provide (…) a better modern alternative to the traditional bank account,â said Saeed Albuhairi, co-founder and CEO of the FinTech platform.
“We are working hard to obtain the necessary licenses and approvals to conduct our business under the supervision of the Saudi Central Bank in order to realize the kingdom’s ambition to develop a diverse and efficient financial sector.”
The demand for digital payments and other FinTech services has increased around the world as more people use online banking and other platforms to transfer money and pay for purchases amid the market. coronavirus pandemic.
Founded last year by a team of seasoned banking and tech professionals, Tweeq’s mobile app allows users to open an expense account and start receiving and making payments, as well as making payments. set monthly budgets and long-term financial goals.
Users can also monitor and manage their personal expenses in different categories.
âAs financial regulators open the doors for challengers and innovators, the region is destined to witness the same change that has swept across financial sectors in the United States, Europe, China and India,â said Ahmad AlNaimi, partner of STV.
“We believe Mena will see an even bigger change, fueled by a younger population and increasingly progressive regulators.”
Saudi customers are increasingly choosing FinTech solutions over those offered by traditional financial institutions due to unsatisfactory digital services, the company said, citing a study by the Boston Consulting Group.
Nine in ten Saudi citizens are ready to open an account with a FinTech startup that has no physical branches, according to the report.
Meanwhile, a McKinsey report found that more than 80% of the kingdom’s urban consumers prefer to deal with financial institutions digitally.
Investors are also crowding into the region’s FinTech space as the adoption of contactless payments and other digital solutions accelerates.
Earlier this month, Dubai-based peer-to-peer payments startup Ziina raised $ 7.5 million through an undergraduate funding round. The company said it would use the funds to set up its wallet service and expand into Saudi Arabia.