Souqalmal secures strategic investment from SHUAA Capital
MENA’s asset management and investment banking platform SHUAA Capital has acquired a majority stake in UAE-based FinTech and personal financial management platform Souqalmal to support its ambitious growth plan.
Request specific data sets, export tailored directories, and explore the full potential of our Platform. Reach out to our Sales Team
MENA-servicing Asset management and investment banking platform SHUAA Capital has successfully completed a strategic investment in UAE-based fintech Souqalmal to acquire a major stake in the startup. Following the investment, Ambareen Musa, Founder, and CEO of Souqalmal, will continue to lead the business and oversee the expansion of its services. SHUAA joins existing strategic investors Riyad Capital and UK comparison website GoCompare, which will remain shareholders in Souqalmal.
This investment supports SHUAA’s strategy to increase its digital offerings and enhance personal finance and investment opportunities for the consumer. At the same time, this vision is aligned with Souqalmal’s future growth, as the Company looks to strengthen its offering and develop a personal financial management platform that will include financial education and awareness.
As recorded in our FinTech 2022 Venture Investment Report, the FinTech space across EVMs observed an exceptional investment run over the past year. With VC investment growing by more than 500% YoY, funding in the FinTech sector raised more than $2Bn in 2021. FinTech was the top-performing industry in almost all of the key geographies in Emerging Venture Markets; the 183% year-over-year growth in FinTech funding across MENA was the highest recorded over the past five years, while the industry raised more than 60% of total investment in Africa. While investors sought out FinTech solutions to real-world problems, financial inclusion and SME support have been on top of investor mandates. This direction resulted in sizable investments backing the likes of digital ledgers DigiKhata and Udhaar App in Pakistan, alternative payment platforms like Dopay in Egypt, and Sharia-compliant crowdlending opportunities like Lendo in KSA. The symbiosis of these startups not only offers on-demand solutions for financing and transacting, but more importantly, creates healthy and accessible overall financial environments.
Access our suite of Full Year 2021 Reports covering MENA, Africa, Pakistan & Turkey. Browse our latest and pick your data focus
Souqalmal launched the first corporate financial education program for employees last year through its MoneyDoctor Program, the first of its kind in the region, and is recognized as the leading authority in the industry when it comes to representing the voice of the customer with financial institutions. This program is the first step in delivering its vision of allowing customers to educate themselves, get instant pre-approval on their credit products, track their spending and grow their wealth, all on one platform.
Companies such as MAF, Careem, Emirates Catering are now all offering the MoneyDoctor Program to their employees making sure that financial health is a big part of employee wellness. Financial issues are amongst the highest causes of stress and decreased productivity in the workplace, and as we emerge from the last 2 years of the COVID-19 pandemic, financial health has taken on greater importance for employees and is an important factor for CEO’s to consider in terms of employee retention and wellness. Commenting on the investment, Fawad Tariq Khan, MD and Head of Investment Banking at SHUAA Capital, said: “We are excited to join Souqalmal and Ambareen on their journey to becoming an interactive personal finance management platform. We believe that Souqalmal and its financial education arm have the ability to empower customers to understand, manage and grow their finances in a better way. As Souqalmal strengthens its personal and wealth management offering, SHUAA will be well-positioned to help the Company access new pools of capital, products, and more importantly knowledge.”
The investment will provide growth capital, allowing Souqalmal to execute on its ambitious growth plan over the next 24 months. Ambareen Musa, Founder and CEO of Souqalmal concluded, “This acquisition gives Souqalmal what it needs to now bring the company to the next level. We are really looking forward to what we can do together with a partner like SHUAA Capital. The drive to digitization of financial services is where the two companies really clicked and with this marriage brings resources, talent and the funds we need to really take on the under-penetrated financial education industry.”
Looking to cash in on this startup landscape? Browse 1,700+ FinTech startups in EVMs