Fintech Startup Tabby Secures $200m in Funding
Middle Eastern ‘buy now, pay later’ company Tabby has announced that it has raised $200 million in a Series D funding round. This comes just months after it raised $58 million in a Series C round. The latest funding round, led by Sequoia Capital India and STV, values Tabby at $1 billion and gives it unicorn status. The company is now considering an initial public offering (IPO).
Tabby’s founder and CEO, Hosam Arab, expressed excitement about the growth the company has experienced in the past year, attracting interest from investors. According to Arab, the Middle Eastern market’s unique dynamics have allowed Tabby to grow profitably, even though other ‘buy now, pay later’ models have faced challenges in different regions.
Existing investors, including PayPal Ventures, Arbor Ventures, and Mubadala Investment Capital, also participated in the funding round. Arab stated that this could potentially be the last round of funding for Tabby before going public.
Tabby’s Journey and Achievements
Since its establishment in 2019, Tabby has expanded its services to over 30,000 brands in the Middle East, catering to various sectors such as luxury, fashion, beauty, electronics, and children’s toys. The company has amassed a user base of more than 10 million across Saudi Arabia, Kuwait, and the UAE.
Tabby’s success in achieving profitability sets it apart from other ‘buy now, pay later’ companies. The company’s alignment with the market’s economic structure and its partnerships with numerous brands have contributed to its ability to thrive.
Zilch, a similar BNPL company operating in the UK, also made headlines recently by securing a deal with eBay, maintaining its $2 billion valuation. Although both Tabby and Zilch have achieved profitability, they operate in distinct markets with varying dynamics.