Spotii, a Buy Now, Pay Later (BNPL) startup based in the UAE, and one of many BNPL players in the region, has been acquired by Australian BNPL firm Zip for $16.25 million.
This acquisition comes following Zip’s successful expansion to the US and the UK, with the company now extending its BNPL operations to Europe and the Middle East.
Zip initially made a strategic investment in Spotii in December of 2020, offering the UAE startup access to expertise, public finance support, technical knowhow and access to a global merchant network, while enabling Spotii’s merchants to access new geographic opportunities, including the US, UK, Australia and New Zealand.
Under the acquisition, Zip will now purchase the remaining shares in Spotii that Zip does not already own for an amount of approx. $16 million, implying an enterprise value of approx. $20 million. The completion of the acquisition is expected to occur in Q3 CY21.
Anuscha Ahmed, Spotii’s Co-Founder and CEO, said:
“Since founding Spotii in early 2020, we’ve seen significant uptake of the platform by merchants and customers, highlighting the appetite and need for BNPL solutions in the MENA region. Joining forces with Zip – a global leader in the BNPL space – will enable us to drive further growth by tapping into the company’s advanced technology and expertise. For merchants, it means greater access to customers outside the MENA region, while BNPL customers in the regional markets will have greater access to international merchants. Ultimately, it highlights the Middle East as a growing region for eCommerce and BNPL offerings.”
Spotii is a major player in the BNPL industry, operating in both the UAE and Saudi Arabia, and is integrated to 650+ merchants and has over 40,000+ customers on the platform.