Tabby, a prominent Gulf-based fintech company, has dramatically increased its valuation to $3.3 billion following a successful Series E funding round. The buy now, pay later (BNPL) firm, which plans to go public within 18 months, secured $160 million from leading investors including Blue Pool Capital and Hassana Investment Company.
The recent financing marks a significant leap from Tabby’s previous valuation of $1.5 billion at the end of 2023. The company, founded in 2019, allows customers to delay payments on purchases and boasts partnerships with over 40,000 brands, such as Amazon and Shein, primarily in Saudi Arabia and the UAE.
The BNPL model gained traction during the COVID-19 pandemic, which pushed shoppers towards online platforms. However, regulators in the UK and US have raised cautionary notes regarding this financial service, emphasizing the need for consumers to be aware of potential risks.
CEO Hosam Arab highlighted the goal of transforming Tabby beyond its core BNPL offerings. The fresh capital will enable investments into new product lines, including digital spending accounts and money management tools. Last year, Tabby expanded its portfolio by acquiring Saudi-based digital wallet operator Tweeq.
With aspirations to reach 20 million users by year-end, Tabby is considering listing venues in Saudi Arabia for its initial public offering (IPO). Major financial institutions HSBC, JP Morgan, and Morgan Stanley are reportedly involved in the IPO process, though they have not commented on their roles.
The Gulf region has witnessed a surge in IPO activity, driven by governmental efforts to diversify economies beyond oil dependence. Arab noted that the scarcity of tech and growth businesses in regional public markets positions Tabby as an attractive investment prospect.
