Riyadh - Sharikat Mubasher: Alrajhi Bank announced it has acquired a 65% stake in the "Drahim" application, a leading financial management and automated investment platform licensed by the Saudi Central Bank within the FinTech Lab and the Capital Market Authority's regulatory environment.
This acquisition is part of Alrajhi Bank’s strategy to leverage the latest technologies and regulatory frameworks to strengthen its leadership in the financial sector, as per a press release recently issued by the bank.
This acquisition marks the first of its kind in the region, with a Saudi bank securing a majority stake in a local fintech startup. Drahim is a Saudi-based app that aims to deliver open banking and fintech services to individuals, aspiring to become the leading platform for investment and savings services in the region.
Waleed Al-Mogbel, Managing Director and CEO of Alrajhi Bank commented: "Our investment in Drahim reflects our commitment to empowering fintech companies and supporting their growth, aligning with our vision to be a preferred partner for emerging companies in the fast-growing fintech sector. Developing the financial sector is a key objective of Saudi Vision 2030, which aims to foster 525 fintech companies by 2030, enhancing the role of fintech players in driving innovation and competition."
Sultan Al Khayal, CEO of Drahim, expressed his pride in the partnership with Alrajhi Bank, stating: "This acquisition is a testament to the success of the Saudi Central Bank's experimental regulatory environment and the Capital Market Authority's FinTech Lab, which have paved the way for startups to build innovative solutions that contribute to the Financial Sector Development Program's goals."
Al Khayal further emphasized Drahim's role in achieving the Financial Sector Development Program's objectives by enhancing daily banking experiences, savings, and retirement planning through its investment products. He expressed gratitude to the Saudi Central Bank and the Capital Market Authority's FinTech Lab for their continuous support in empowering emerging companies within the FinTech sector, contributing to the Kingdom's ambitious vision for financial sector development.
He highlighted that this agreement builds on past successes and showcases the maturity of the local market. Al Khayal also praised the dedicated Drahim team for their commitment and passion since the company's inception, working diligently to achieve their objectives.
Through this investment, Drahim aims to continue advancing its products for individuals and businesses in financial management, investment, and payment solutions, enhancing the quality of available financial services.
The acquisition followed a pre-seed round led by Sanabil Investments via the 500 Fund, with contributions from angel investors and Gulf investment firms, and was succeeded by a seed round led by (Y Combinator), the world-renowned business accelerator.
