Mubadala Investment Capital invests in fintech Tabby’s Series C round

UAE’s shopping and financial services app Tabby has raised $58m in a Series C round which has valued the company at $660m.

The funds were raised from Sequoia Capital India, STV and PayPal Ventures, Mubadala Investment Capital, Arbor Ventures and Endeavor Catalyst.

The proceeds will be used to expand Tabby’s product line into consumer financial services and will support its growing operations, the company said in a statement on Tuesday. This round also makes the company the first in the GCC to receive funding from PayPal Ventures.

“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,” explained Hosam Arab, CEO and co-founder of Tabby.

“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 MENA.”

Over 10,000 brands and small businesses, including H&M, Adidas, IKEA, SHEIN, noon, and Bloomingdale’s use Tabby’s technology to offer flexible payments online and in stores. It is active in Saudi Arabia, UAE, Egypt and Kuwait.

Last year, Tabby crossed three million active shoppers, expanded its operations to Egypt and also grew 5x in revenue over the previous year.

Read: UAE’s buy-now-pay later platform Tabby expands to Egypt

Meanwhile, the fintech company issued over 150,000 Tabby Cards only six months after launching its cards programme with in-store sales now making up over 10 per cent of the company’s volumes.

Tabby also partnered with Saudi Arabia’s delivery super app, ToYou this year, to offers customers a convenient way to pay.

Read: Saudi delivery app ToYou joins forces with BNPL platform Tabby

It secured $150m in debt financing from Atalaya Capital Management and Partners for Growth in 2022.