Wamda invests in UAE-based fintech to offer cash-on-delivery alternative

Venture capital(VC) firm Wamda has announcement an investment in Tabby, a UAE-based fintech startup, to leverage the payments landscape across the Middle East and North Africa (MENA) region.

The platform enables consumers in the UAE and Saudi Arabia to pay off their purchases either in one-go or in multiple installments at a later date, a statement said.

Customers can complete their online purchases without the need to enter credit/debit card details.

Wamda’s investment is part of Tabby’s $2m seed round. The investment round was headed by Global Founders Capital, alongside Arbor Ventures.

Wamda has invested in UAE-based fintech startup Tabby, a platform leveraging proprietary technology to improve current inefficiencies in Mena payment landscape. https://t.co/qN3roRYDDm #announcement pic.twitter.com/dqWUBMpMva

— Wamda ومضة (@WamdaME) November 11, 2019

“We’re excited to be launching a ‘Buy Now Pay Later’ business that provides great value to consumers, retailers and financial institutions while addressing the government’s goals of growing non-cash transactions in their economies,” said Hosam Arab, CEO, Tabby.

A study by Google and Bain & Company found that 62 per cent of the region’s online consumers continue to prefer the cash-on-delivery (COD) option over other alternatives, the statement added.

According to a 2019 Visa study, the MENA region is the fastest-growing e-commerce market globally. UAE shoppers recorded average online transactions of $144 per purchase.

“Tabby customers will be able to better manage their spending by making purchases at their convenience and paying for them when they have the funds available while retailers will benefit from being able to sell more to their customers, and gain access to a larger customer base,” said Arab.

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