Al Rajhi Bank has acquired a 65% stake in Darahim, a Saudi financial platform specializing in financial management and automated investment. This marks the first instance of a Saudi bank taking a majority stake in a local fintech startup.
Darahim Platform
Al Rajhi Bank’s acquisition of Darahim, which is authorized by the Saudi Central Bank within the experimental and legislative environment and the Financial Technology Lab of the Capital Market Authority, aims to support and grow fintech companies. As stated by Walid Al-Muqbil, CEO of Al Rajhi Bank, the investment is intended to empower fintech companies and contribute to their growth, aligning with the bank’s vision to be an ideal partner for fast-growing fintech startups.
Goals of Darahim
Darahim is a Saudi application designed to provide open banking and financial technology services to individuals. It aims to be a leading platform for investment and savings services. The acquisition by Al Rajhi Bank aims to:
- Mark the first regional acquisition of its kind.
- Enable a Saudi bank to hold a majority stake in a Saudi fintech startup.
- Demonstrate the success of the Saudi Central Bank’s experimental and legislative environment and the Financial Technology Lab of the Capital Market Authority.
- Open opportunities for startups and entrepreneurs to develop tech solutions that support the goals of the Financial Sector Development Program.
