The funding will be used to expand Tabby’s product line and include new financial services.
Tabby, a UAE-based buy now pay later (BNPL) startup, has raised $58 million in a Series C round led by Sequoia Capital India and STV and PayPal Ventures at a valuation of $660 million. Other participating investors included Mubadala Investment Capital, Arbor Ventures, and Endeavor Catalyst.
Founded in 2019 by Hosam Arab, Tabby works with over 10,000 brands such as H&M, Adidas, IKEA, noon and Bloomingdale amongst other retailers in MENA. It also has three million active users to date, and is present in key markets across the region including Saudi Arabia, UAE, Kuwait, and more recently Egypt.
"With rising interest rates and growing inflation, it has never been more important for people to have access to payment flexibility to stay in control of their finances,” Hosam Arab, CEO and Co-Founder of Tabby, tells StartupScene. “Despite downward pressure on fintech valuations, our business continues to sustainably scale as we lead the generational shift towards fair and transparent financial products in MENA.”
The funding will be used to expand Tabby’s product line and include new financial services, further growing its operations across the Middle East.
Fintech continues to be among the most funded sectors in the region, raising an estimated $2.25 billion in 2022, according Magnitt’s latest Emerging Venture Markets report. Some fintech startups receiving the lion’s share of funding last year include Saudi Arabia’s Tamara, raising $100 million, Egypt’s Blnk raising $32 million, and UAE’s Postpay raising $10 million.
Sign up for the daily Startup Digest.