Saudi-based Al Hassan Ghazi Ibrahim Shaker Company has reached an agreement with leading Buy Now Pay Later (BNPL) company Cashew Payments Holding Limited to acquire a 40% stake in its Saudi unit - Cashew Arabia Company for Information Technology (Cashew KSA).

A leading Saudi manufacturer and distributor of air conditioners and home appliances, Shaker Group said as per the MoU, the duo will conduct the necessary studies for the proposed investment plan.

This possible strategic investment, upon the final agreement between both parties, will support the launch of Cashew KSA’s offerings of modern payment solutions and growth of its market share in the kingdom, it stated.

According to a newly-released survey by ResearchAndMarkets.com, the Saudi BNPL sector is expected to grow by 81.2% in 2022 with the mid to long-term growth story continuing to be strong.

The survey showed that consumer adoption of the BNPL solutions will experience sustained growth during the period between 2022-2028 with the BNPL Gross Merchandise Value in the kingdom reaching $5299.3 million by 2028.

The proposed investment will also allow for the smooth integration of Cashew KSA’s BNPL solutions with Shaker’s growing direct to retail segment, said a top official.

"Our potential investment into Cashew KSA is a key milestone in our execution on Shaker’s strategic initiatives of growth and our strong commitment to innovation, and to unlocking new growth avenues within the kingdom’s retail market," remarked Shaker Group CEO Mohammed Ibrahim Abunayyan.

"We believe this will be a compelling initiative that will support Cashew KSA to successfully launch its offering in the Kingdom, by leveraging the combined established retail expertise and reach of Shaker and Cashew’s technology-led offering, to meet expanding customer demands for BNPL services," he added.

With the BNPL payment market in Saudi Arabia expected to grow at a CAGR of 42.4% during 2022-2028*, Shaker said it will support Cashew KSA to leverage its innovative and scalable operating model to launch and accelerate their market share growth within the sector in the kingdom.

On the stake buy, Cashew KSA Co-founder and CEO Ammar Afif said: "Partnering with Shaker, one of the most well-reputed trading conglomerates in Saudi Arabia, will allow us to launch our services and products in the kingdom and build the infrastructure that would enable the growth of BNPL solutions in the region’s fastest growing online consumer market."

"The strategic support from Shaker’s local and regional expertise will enable Cashew KSA to efficiently navigate and grow its market share in the Saudi consumer finance segment," he added.

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