UAE startup Tabby secures $7m funding, partners with Apparel Group

UAE-based fintech startup Tabby has secured $7m funding to drive regional expansion into Saudi Arabia and foster further growth in the UAE, it announced on June 8.

The funding round led by Raed Ventures with participation from MSA Capital and existing investor Arbor Ventures, will strengthen the company’s presence at a time when regional online consumer spend has scaled due to the ongoing pandemic.

Established in 2019, Tabby aims to empower customers to conveniently shop while remaining in control of their finances. Its Pay Later option offers an alternative to cash on delivery (COD) by allowing customers to purchase products online using only their mobile phone number and email address while requiring no preregistration or credit card. Its Pay in Installments option gives customers the flexibility to pay for their purchases in multiple, interest-free installments without requiring a credit card.

Hosam Arab, co-founder and CEO of Tabby said: “We are very pleased to bring our best-in-market solution to Saudi Arabia at a time when consumers and merchants alike will be strapped for cash. This funding will give our merchant partners further security and assurance that we are sufficiently capitalised to support their sales.”

Saed Nashef, Raed Ventures’ founding partner added: “Hosam and his team have built an impressive product that structurally solves key friction points in a transaction for both consumers and merchants, which is especially relevant given the current pandemic. We’re very excited to partner with Tabby, and support its timely launch in Saudi Arabia.”

Tabby has also signed an agreement with retail group Apparel Group to offer its solution across the retailer’s entire online portfolio which includes brands like 6thStreet, Tommy Hilfiger and Aldo.

Dharmin Ved, CEO of 6th Street said: “Given the prevalence of cash on delivery in our market and the complexity it presents to our operations, we were keen to partner with Tabby to provide our customers with a simple alternative to COD that takes the hassle out of the process yet keeps our customers happy.”

Tabby has also partnered with over 20 regional e-commerce retailers including Abdul Samad Al Qurashi and Golden Scent.

E-commerce in the GCC is on an exponential growth trajectory in the aftermath of the coronavirus pandemic that has spurred consumers to shift their purchasing behaviours and adopt digitalisation.

UAE-based merchant acquirer Network International confirmed that nearly 2,000 businesses in the UAE are either looking to develop e-commerce capabilities or enable the company’s PayByLink solution.

Read: Nearly 2,000 UAE-based merchants look to develop e-commerce – Network International

Also read: E-commerce paving the way for the future of retail and more