Tabby Raises $200 Million in Funding, Propels Fintech Unicorn Status

Tabby Raises $200 Million in Funding, Propels Fintech Unicorn Status

By Staff Writer, 02 November 2023

Riyadh-based Tabby—previously Dubai-based—a prominent fintech startup, has successfully raised $200 million in equity funding, marking a significant milestone by joining the unicorn club with a valuation surpassing $1.5 billion.

This achievement comes ahead of the company's planned initial public offering (IPO) in Saudi Arabia.

The latest funding round was spearheaded by Wellington Management, a leading investment firm, with active participation from growth equity investor Bluepool Capital.

Additionally, Tabby's statement reveals the continued support of existing investors such as STV, Mubadala Investment Capital, PayPal Ventures, and Arbor Ventures.

This accomplishment follows closely on the heels of Tabby's Series C funding round, which secured $58 million, led by Sequoia Capital India.

Notable contributors to this previous round included STV, PayPal Ventures, Mubadala Investment Capital, Arbor Ventures, and Endeavor Catalyst.

Tabby offers shoppers in Saudi Arabia, the UAE, Egypt, and Kuwait a convenient solution to split payments into multiple installments. Founded in 2019 by Hosam Arab and Daniil Barkalov, the "buy now, pay later" platform has amassed over 10 million users and partnered with more than 30,000 brands, including household names like SHEIN, Amazon, Adidas, IKEA, H&M, Samsung, and Noon.

Fueling Expansion

The funds secured in this latest round will be channeled towards strengthening Tabby's financial foundation and addressing the surging demand for their flagship "buy now, pay later" service.

Currently, the app manages an impressive $6 billion in annual transaction volume, with 20% of transactions conducted through the Tabby Card.

Moreover, Tabby has recently introduced "Tabby Shop," a platform showcasing over 500,000 products from thousands of brands.

This addition aims to help shoppers discover and track the best products and deals in one convenient location.

Tabby Raises $200 Million, Adding to MENA's Unicorn Startup Ecosystem

The Middle East and North Africa (MENA) region has seen several startups achieve unicorn status in recent years.

In a noteworthy example, Egyptian fintech startup MNT-Halan became a unicorn in February 2023, securing $200 million in funding from Abu Dhabi-based Chimera.

Similarly, in 2021, the UAE-based Kitopi joined the unicorn club following a Series C funding round that raised $415 million.

Furthermore, SWVL, a UAE-based bus booking app, attained unicorn status in the same year after merging with Queen's Gambit Growth Capital.

The MENA region continues to be a vibrant hub for innovative startups and significant venture capital investments.

Amr Abdelhamid / Forbes Middle East

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