Tabby, a Middle Eastern ‘buy now, pay later’ (BNPL) fintech, has successfully raised $200m in its Series D funding round as it prepares for a potential initial public offering (IPO). This funding comes less than a year after the company raised $58m in its Series C funding round, led by Sequoia Capital India and STV. With this new round, Tabby’s valuation has reached $1bn, officially making it a unicorn in the fintech space.
Growth and Interest
Tabby has experienced remarkable growth over the past year, which has garnered significant interest from investors. The company’s Founder and CEO, Hosam Arab, stated that investors recognized the value in Tabby’s BNPL model and were curious about the factors that set the Middle Eastern market apart from others. Arab also credited Tabby’s profitable growth to the unique alignment of the market’s structure with the economics of a BNPL model.
Investors and Future Plans
In addition to Sequoia Capital India and STV, existing investors PayPal Ventures, Arbor Ventures, and Mubadala Investment Capital also participated in the funding round. Arab mentioned that this could potentially be the last round of capital raised before Tabby goes public, and the company intentionally brought in investors with expertise in the public market. Tabby, founded in 2019, has built partnerships with over 30,000 brands across various industries, serving more than 10 million users in Saudi Arabia, Kuwait, and the UAE.
Zilch and the UK Market
Zilch, a BNPL and ad-subsidised payment network based in the UK, recently secured a deal with eBay, maintaining its $2bn valuation. Despite operating in a different market, Zilch has also achieved profitability, showcasing further success for the BNPL sector.