ToYou, a Saudi-based delivery super app, has joined forces with the shopping and payments app Tabby to launch ToYou Pay Later buy-now-pay-later solution powered by Tabby.
This partnership is meant to level up customer experience and offer enhanced shopping with convenient payment methods.
Tabby’s CEO and co-founder, Hosam Arab, said: “ToYou provides an important service to households in the Kingdom and we’re proud to empower their customers further with payment options that provide flexibility with no interest or fees.”
Apart from ToYou, Tabby is also offering BNPL facility for top brands including noon, Bloomingdale’s, Adidas and SHEIN.
The start-up, founded in 2019, enables users to buy as many times as they want from ToYou, with a single bill at the end of the month without interest or fees.
Tabby delivers average increases of more than 30 per cent in order values, 18 per cent in conversion rates and 40 per cent in repeat purchasing. Raising more than $275 million in funding to date, Tabby is active in Saudi Arabia, the UAE, Kuwait and Egypt, with more than 10,000 global brands and small businesses onboard.
In early August, the start-up secured $150 million in debt financing from US-based firms Atalaya Capital Management and Partners for Growth.
To date, Tabby has raised $275 million in total capital.
In the space of just three years, ToYou has enhanced its operations across operational performance and expanded its services and offerings to 56 cities across the kingdom.
ToYou’s CCO, Ziyad Al-Ajlan, said: “ToYou has earned a leading position in the delivery space through constant innovation and a deep understanding of customer needs and market dynamics. In the BNPL arena, the same can be said for Tabby,” explains the CCO. “Together, we are a powerful force on the fintech landscape, and our users can expect great things to come.
“We are both innovators and leaders in our fields, and we share a common desire to truly transform the customer experience,” he says. “Crucially, we are strong believers in the power of technology to solve real-world problems – and enrich the lives of our customers and our latest partnership does precisely that.”
ToYou’s decision to enter a partnership with Tabby comes against a backdrop of significant growth in the BNPL market. According to a Market and Research report, BNPL payments in Saudi Arabia are expected to have grown 81.2 per cent, reaching $636.7 million by the end of last year. The BNPL payment adoption is predicted to record a compound annual growth rate of 42.4 per cent till 2028, with BNPL gross merchandise value in the country reaching almost $5.3 billion by the end of the forecast period.