Tuesday, 2023 September 26

‘Buy now, pay later’ platform Tabby raises USD 50 million Series B at USD 300 million valuation

Dubai-headquartered fintech Tabby has raised USD 50 million in a Series B equity round at a valuation of USD 300 million. This makes Tabby one of the highest valued startups in the Middle East and North Africa. The round was led by Global Founders Capital and STV with participation from Delivery Hero, CCVA, and existing investors, including Arbor Ventures, Mubadala Investment Capital, Raed Ventures, Global Ventures, MSA Capital, VentureSouq, Outliers VC, JIMCO, and HOF Capital.

It is the first fintech investment in the region made by Delivery Hero. The round comes a month after Tabby raised USD 50 million in debt financing, taking the total capital raised to date (including equity and debt) to over USD 130 million.

Founded just two years ago by Hosam Arab, Tabby offers “buy now, pay later” solutions to retailers, enabling their customers to shop at their online or retail stores with interest-free installments. This option can easily be integrated by retailers on their checkout pages using plugins and APIs. Tabby’s consumer app has over 400,000 active shoppers, it said in a statement, adding that it has 3,000 daily downloads. Tabby currently works with over 2,000 partners, including global brands like Adidas, Ikea, Shein, VogaCloset, and retail groups like Chalhoub Group, Al Futtaim Group, Landmark Group, and Apparel Group.

Hosam Arab, co-founder and CEO, commenting on the investment, 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.”

Ahmad Alshammari, partner at STV, said, “As the global BNPL market is expected to grow at around 30% 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. Our doubling down shows our strong belief that Tabby is the market leader in MENA and that they will continue to drive BNPL’s growth across the region by enabling buyers and merchants alike.”

Mark Venema, senior vice president of strategy for Delivery Hero, said, “At Delivery Hero, we believe in the power of entrepreneurship. 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.”

The startup plans to use the investment to serve the increasing demand for its products, especially in Saudi Arabia.

Read this: Former Careem Pay boss launches card-as-a-service platform SimpliFi for MENA and Pakistan

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This article was originally published on MENAbytes.


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