The UAE and Saudi Arabia’s buy now, pay later (BNPL) platform tabby has closed a $50 million series B funding round that it will use to accelerate growth and enter new GCC markets.
The latest funding round comes just one month after tabby raised $50m in debt financing, bringing the company’s total fundraising to over $130m in less than two years. Tabby is now valued at $300m.
Hosam Arab, CEO and co-founder of tabby, 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.”
The funding round was led by Global Founders Capital and STV, with participation from Delivery Hero, CCVA and existing investors.
“As the global BNPL market is expected to grow at approximately 30 percent 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,” said Ahmad Alshammari, partner at STV.
Hosam Arab, CEO and co-founder of tabby.
“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.”
Tabby works with more than 2,000 partners including global brands like Adidas, IKEA, SHEIN, VogaCloset and regional retail groups like Chalhoub Group, Al Futtaim Group, Landmark Group, and Apparel Group.
This investment marks Delivery Hero’s first fintech investment in MENA. Delivery Hero, which owns and operates a number of regional food and grocery delivery companies including Talabat, InstaShop and Hunger Station, has one of the largest customer bases in the MENA region.
“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,” said Mark Venema, senior vice president, Strategy of Delivery Hero.
Existing investors Arbor Ventures, Mubadala Investment Capital, Raed Ventures, Global Ventures, MSA Capital, VentureSouq, Outliers VC, JIMCO, and HOF all participated in the Series B financing.
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