Buy-now-pay-later provider tabby secures $50m in Series B round
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Buy-now-pay-later provider tabby secures $50m in Series B round

Buy-now-pay-later provider tabby secures $50m in Series B round

The funding will be used to expand tabby’s product portfolio and launch in new markets

Tabby, the buy now, pay later (BNPL) provider in Saudi Arabia and the UAE, has raised $50m in a new equity round that has valued the company at $300m.

The Series B financing will be used to expand tabby’s product portfolio and enter a number of new markets, and comes in the wake of $50m in debt financing recently raised by the firm, bringing its total funding to over $130m in less than two years.

The funding round is led by Global Founders Capital and STV with participation from Delivery Hero, CCVA and existing investors.

Tabby integrates with retailers, enabling customers to shop at their online and physical stores with interest-free instalments. Its app has more than 400,000 active shoppers, with 3,000 daily downloads.

The company recently launched its own cashback loyalty programme which rewards users who shop using the tabby app with cash that can be used to pay off their outstanding instalments or deposited into their personal bank accounts, a statement said.

Hosam Arab, CEO and co-founder of tabby, said: “With global players consolidating the MENA BNPL space, we at tabby are proud to continue building a local business and work with investors who understand its value. This investment will enable us to deliver the most rewarding and relevant shopping experience for regional consumers and retailers.”

“We are excited to be investing in tabby as our first fintech investment in MENA, a strategically important region for Delivery Hero. We see great potential in tabby to drive the industry forward and are proud to be supporting the company on its growth journey,” noted Mark Venema, senior vice president, Strategy at Delivery Hero.

Ahmad Alshammari, Partner at STV, added: “As the global BNPL market is expected to grow at ~30 per cent CAGR over the next five years, we estimate that MENA will grow at least twice as fast, further accelerated by a rapid switch to contactless payments, e-commerce growth, and access to credit.”

Last year, tabby partnered with UAE’s Al-Futtaim Group to offer customers the option to buy now and pay later across a slew of its brands.

Read: UAE’s Al-Futtaim Group partners with Tabby to offer flexible shopping options

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