Dubai-headquartered asset management and investment banking platform Shuaa Capital has acquired a majority stake in UAE-based fintech Souqalmal for an undisclosed sum.
The deal will provide the technology business with capital to execute its growth plans over the next two years.
Following the investment, Souqalmal founder and chief executive Ambareen Musa will continue to lead the business.
Existing investors Riyad Capital and UK comparison website GoCompare will keep their stakes in the company.
The deal supports Shuaa’s strategy to increase its digital offering as well as expand personal finance and investment opportunities for consumers.
Souqalmal is also gearing up to develop a personal financial management platform in the future, which will include financial education and awareness.
‘Under-penetrated’ space in the sector
Fawad Tariq, managing director 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.”
Souqalmal’s Musa added: “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 digitisation of financial services is where the two companies really clicked and with this marriage brings resources, talent and funds we need to really take on the under-penetrated financial education industry.”
