Tabby Secures $200M In Series D Funding, Attains $1.5B Valuation


Dubai-based buy now, pay later (BNPL) platform, Tabby, has successfully raised $200 million in its latest Series D funding round, with a valuation of $1.5 billion. This achievement positions Tabby as the first fintech unicorn in the Gulf region. Despite the challenges faced by other BNPL companies globally, Tabby has experienced substantial growth and profitability.

Key Takeaway

Tabby, the Middle East’s leading BNPL platform, has secured $200 million in Series D funding, achieving a valuation of

.5 billion. With its profitability and substantial growth, Tabby stands out in an industry where many BNPL providers face challenges. The company’s success can be attributed to its unique market position in the Middle East and early market regulations that align with the BNPL model, catering to consumers’ credit needs responsibly.

Impressive Growth and Profitability

Tabby’s latest funding round comes less than a year after its $58 million Series C round led by Sequoia Capital India and STV. In addition to existing investors like Mubadala Investment Capital and PayPal Ventures, new backers such as Wellington Management and Bluepool Capital have also joined the funding round.

According to Tabby’s founder and CEO, Hosam Arab, the company has witnessed incredible growth in the past year. This growth has attracted significant interest from investors who recognize the value of the BNPL model in the Middle East market. Despite the challenges faced by the BNPL model in other markets, Tabby’s profitability sets it apart, with a threefold growth in revenues.

Arab revealed that Tabby explored discussions with interested parties who already had exposure to the BNPL model in other markets. The company’s decision to raise capital at this time aligns with its potential plans for an IPO, making this potentially the last round of capital raised before going public. Tabby aimed to bring in investors with expertise in the public market to support its future growth.

Tabby’s Unique Market Position

Tabby has established itself as a leading BNPL provider in the Middle East, working with over 30,000 brands and 10 of the largest retail groups in the MENA region. While Tabby entered the market later than its counterparts like Affirm and Afterpay, it has managed to attract over 10 million users across Saudi Arabia, UAE, and Kuwait.

Unlike BNPL providers in the United States and Europe, Tabby claims profitability in the GCC region. This can be attributed to several factors. The Middle East market has a relatively moderate e-commerce penetration, and consumers have limited access to credit alternatives. Therefore, Tabby’s BNPL services fulfill a crucial need for credit in this market.

Tabby caters to two distinct customer segments. The first segment comprises individuals in markets like Saudi Arabia, where credit card penetration is low. The second segment consists of customers who find Tabby’s tokenized payment method convenient. Tabby’s unique market position and early market regulations have contributed to its solid payment performance, ensuring that customers can maintain access to credit responsibly.

Expanding Presence and Future Plans

Saudi Arabia remains Tabby’s largest market, representing 80% of its customer base and contributing significantly to its annualized transaction volume of over $6 billion. The company is currently preparing for its IPO on the Saudi stock exchange, and its decision to shift its headquarters from Dubai to Riyadh underscores its commitment to its largest market.

In the UAE, Tabby has made significant strides, including the launch of Tabby Cards for in-store purchases. Over 4,000 stores now accept Tabby’s payment method, accounting for over 20% of the platform’s total volumes. Recently, Tabby also introduced Tabby Shop, providing a wide range of products to shoppers across various brands.

Looking ahead, Tabby plans to invest further in its current markets by introducing additional products that enhance customers’ financial well-being. This includes expanding its range of credit options, extending its network, and offering a broader range of financial services, such as payments and savings.

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