Tabby, the Mubadala-backed buy now, pay later (BNPL) platform, has secured $160 million in a Series E funding round, bringing its valuation to $3.3 billion. This milestone makes Tabby the most valuable venture capital-backed FinTech start-up in the Middle East and North Africa (MENA) region. The funding round was led by existing investors, including Hong Kong’s Blue Pool Capital and Riyadh-based Hassana Investment Company, along with Saudi Technology Ventures and Boston-based Wellington Management.
Dubai-based start-up industry tracker Magnitt confirmed Tabby’s status as MENA’s highest-valued FinTech, highlighting its rapid growth and industry dominance. The funding arrives as Tabby prepares for its highly anticipated initial public offering (IPO) in Saudi Arabia. While the company has not announced a specific timeline, discussions with HSBC Holdings, JP Morgan Chase, and Morgan Stanley are reportedly underway regarding the potential listing.
Strengthening Market Position and Expanding Services
Tabby intends to use the newly raised capital to accelerate the expansion of its financial services. These include digital spending accounts, payments, cards, and money management tools. Additionally, the company aims to support Saudi Arabia’s transition to a cashless economy under the Vision 2030 economic diversification strategy.
“This investment allows us to accelerate our roll-out of products that make managing money simpler and more rewarding for our customers,” said Hosam Arab, chief executive and co-founder of Tabby.
The BNPL model has gained immense popularity, particularly among millennial and Generation Z consumers. The Middle East’s BNPL market is projected to reach $90.42 billion by 2030, growing at a compound annual rate of nearly 35%, according to the Hong Kong-based Business Information Industry Association.
Rapid Growth and Market Leadership
Tabby has cemented its position as a leader in the BNPL space across Saudi Arabia, the UAE, and Kuwait. In November 2023, it made history by achieving unicorn status, surpassing a $1 billion valuation after securing $200 million in a Series D funding round. This achievement placed Tabby among an elite group of billion-dollar start-ups from MENA, including Careem, Kitopi, Swvl, STC Pay, and Fawry.
Further solidifying its financial strength, Tabby secured $700 million in debt financing in December 2023 through a receivables securitization agreement with JP Morgan. Previously, in March 2022, the company raised $54 million from Sequoia Capital India and STV.
Currently, Tabby boasts more than 15 million users and collaborates with over 40,000 brands, including major retailers like Amazon, Samsung, and Noon. These partnerships drive approximately $10 billion in annual sales, underscoring Tabby’s significant impact on the region’s financial ecosystem.
As Tabby prepares for its next phase of growth, its strategic expansion and financial backing position it as a dominant force in the evolving FinTech landscape.
