Tabby, buy-now-pay-later payment and shopping platform, has secured $150 million in debt financing from Atalaya Capital Management and Partners for Growth, marking the largest credit facility obtained by a fintech company in the region.
Tabby’s services give consumers in the UAE and Saudi Arabia access to credit without added interest or fees.
The platform, which operates in Saudi Arabia and the UAE, will use the financing to strengthen its balance sheet, support the growth of its transaction volumes and facilitate its expansion.
“Debt commitments from two reputable institutions is validation of our strong track record and business model,” said Hosam Arab, co-founder and CEO of Tabby.
“As we near profitability, we’re in the fortunate position of not having to raise equity under the current market conditions and as such are thrilled to partner with the like-minded people at Partners for Growth and Atalaya.”
At present, the company entertains two million active shoppers in the UAE and Saudi Arabia and receives more than three million clicks each month.
Tabby is ranked among the top 10 shopping applications in the UAE and Saudi Arabia on Apple AppStore, with 500,000 users installing it every month.
The company intends to expand its operations to more countries in the region by the end of next year.
“Atalaya is excited to partner with Tabby in its mission to expand access to credit and payments in markets where there are limited existing options,” said Justin Burns, managing director of Atalaya Capital.
The first half of this year saw 10 times as much revenue, eight times as many customers and three times as many registered retail partners as the first half of last year, said Tabby.
Last year, the buy-now-pay-later platform recorded 26 million clicks to its retail partners’ platforms, its highest user engagement to date.
“We continue to be impressed by Tabby’s ongoing rapid growth whilst materially improving its unit economics and Partners for Growth is excited to continue to support Tabby through an upsize of our existing facility,” said Max Penel, co-head of global fintech at Partners for Growth.
To date, Tabby has received $275 million in investments.
In May, the platform launched Tabby cards, which are valid at 90 per cent of stores across the UAE and Saudi Arabia.
Tabby is partnered with numerous retail operators and brands across the kingdom and the UAE, including the UAE’s Al Futtaim Group, Saudi Arabian e-commerce site Salla, the Landmark Group’s online-only fast fashion brand, STYLI, IKEA, Shein, Adidas, Level Shoes, H&M, Bath & Body Works, Nike, Swarovski and Bloomingdale’s.