Middle Eastern ‘buy now, pay later’ company Tabby has raised $200m in Series D funding as it prepares for a potential initial public offering (IPO). This comes just months after the company raised $58m in Series C funding. Tabby has now been valued at $1bn, earning itself unicorn status. The latest funding round was participated in by Sequoia Capital India, STV, PayPal Ventures, Arbor Ventures, and Mubadala Investment Capital. CEO Hosam Arab stated that this is potentially the last round of funding before the IPO. Arab also credited the company’s profitability to its unique market dynamics.
Growth and Positive Interest
Tabby has experienced significant growth over the past year, attracting a considerable amount of interest from investors. Arab explained that investors were curious about the differences between this market and others, especially when it came to profitability. The company currently boasts over 10 million users across Saudi Arabia, Kuwait, and the UAE. It has also formed partnerships with more than 30,000 brands across various industries, ranging from luxury to electronics.
The Path to Profitability
Arab highlighted the challenges faced by the buy now, pay later (BNPL) model in other regions. However, he commented that Tabby has managed to achieve profitability due to the alignment of market structures with the economics of a BNPL model. This has been a rare feat for BNPL companies, making Tabby’s success even more noteworthy.
With the latest funding, Tabby aims to further solidify its position in the market and continue its expansion. Arab expressed confidence in the company’s prospects, stating that it has brought in investors with expertise in the public market. Tabby sees the funding round as a significant milestone on its path towards an IPO.