UAE-based BNPL fintech Tabby secures $58 million in Series C round
Dubai-based buy-now-pay-later (BNPL) fintech Tabby has raised $58 million in Series C funding, valuing the company at $660 million.
The funding comes from a number of high-profile backers including Sequoia Capital India, STV, PayPal Ventures, Mubadala Investment Capital, Arbor Ventures and Endeavor Catalyst. It is believed to be the first time PayPal Ventures has provided funding to a startup in the Gulf Cooperation Council (GCC) group of countries.
Tabby will use the money to support product expansion and continue to grow its business. Founded in 2019, the business has already amassed a client list of more than 10,000 brands – including nine of the 10 largest retail groups in the Middle East and North Africa (MENA).
Last year, Tabby reached 3 million active customers on its platform, expanded its business to Egypt and increased its revenue fivefold compared to the previous year. Fintech has also issued over 150,000 Tabby cards, just six months after launching the card program, with in-store sales now accounting for over 10% of the company’s volume.
BNPL market in MENA is ‘just getting started’
Hosam Arab, CEO and co-founder of Tabby, says: “With rising interest rates and increasing inflation, it’s never been more important for people to have access to payment flexibility to stay in control of their finances. Despite downward pressure on fintech valuations. , continues to scale our business sustainably as we lead the generational shift towards fair and transparent financial products in MENA.
“We are excited to grow with an incredible set of investors who believe in the opportunity to create a healthier relationship with money for consumers in a region ripe for change.”
GV Ravishankar, Managing Director, Sequoia Capital India, says: “We are excited to see Tabby grow into a leading consumer-focused fintech company for the region. Over the next few years, it has the opportunity to offer more innovative products to its consumers. improving access while creating a more affordable price. The team has done this with a continued focus on good credit quality and strong finances.”
Ihsan Jawad, partner at STV, adds: “We are delighted to double our partnership with Hosam, Daniil [Barkalov, Co-Founder and COO] and the team on their growth journey across the region. Supporting Tabby means tapping into MENA’s USD 95 billion BNPL market opportunity that has just started, and being part of the future of financial services across the region.”
