Dubai-based buy-now-pay-later fintech Tabby has secured $58 million in Series C funding and secured a valuation of nearly $700 million in the process.
The funding originates from several 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 that PayPal Ventures has provided funding to a start-up located in the GCC region.
Tabby will use the money to fuel the company’s growth and expand its product offering.
CEO and co-founder of Tabby, Hosam Arab, said: “With rising interest rates and growing inflation, it has 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, our business continues to sustainably scale as we lead the generational shift towards fair and transparent financial products in the Mena region. We’re 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 that’s ripe for change.”
Since its founding 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 Mena region.
Last year, Tabby reached three million active shoppers on its platform, expanded its operations to Egypt and grew revenue five-fold during the previous year.
In addition, the fintech company has also issued more than 150,000 Tabby cards, just six months after launching its cards programme, with in-store sales now making up over 10 per cent of the company’s volume.
BNPL market in Mena to grow exponentially
Managing director of Sequoia Capital India, GV Ravishankar, said: “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 several innovative products to its consumers to improve access while creating more affordability. The team has done this with a continued focus on good credit quality and strong economics.”
Partner at STV, Ihsan Jawad, said: “We are pleased to be doubling down on our partnership with Hosam, Daniil and the team on their growth journey across the region. Backing Tabby means tapping into Mena’s $95 billion BNPL market opportunity that is just getting started, and being part of the future of financial services across the region.”
