Islamic payment fintech company Cashew Arabia Company for Information Technology (Cashew KSA) has onboarded a new investor, which will support the firm’s digital lending business in Saudi Arabia.
The strategic investor is Al Hassan Ghazi Ibrahim Shaker Co (Shaker Group), which is involved in the business of manufacturing and distributing home appliances and air conditioners. Through its subsidiary, Shaker Innovative Investments Company, the group acquired 10% of Cashew KSA following an MoU signed between the two entities in June last year.
The group initially proposed to hold up to 40% in Cashew KSA, with the latter holding no less than 60%.
Shaker intends to boost its e-commerce and retail platforms through this strategic investment in the backdrop of compelling e-commerce potential in the Kingdom. The sector, according to Statista, is expected to reach US$11.52 billion this year.
“We are confident that our partnership with Cashew KSA will bring about significant growth opportunities for both companies in the rapidly expanding digital lending space, including the BNPL market in Saudi Arabia,” said Mohammed Ibrahim Abunayyan, CEO of Shaker. “We look forward to supporting Cashew KSA in their efforts to launch and accelerate their market share growth within the sector in the Kingdom.
Cashew KSA is the Saudi arm of UAE-based Cashew Payments Holding which also runs an Islamic digital lending platform in Pakistan under the brand Muawin.
“With their support, we can build the infrastructure needed to meet the demand for digital lending solutions in the region’s fastest growing consumer market,” commented Ammar Afif, CEO and the co-founder of Cashew KSA. “Together we will enable Saudi consumers with a wide variety of digital lending products, a financial management hub and provide a compelling user experience.”