CAIRO: Dubai-based fintech startup Tabby raised $58 million in a series C funding round from international investors as they valued the buy now, pay later service provider at $660 million.
The company will utilize its funding to grow its product offering and expand current products into new markets, Tabyy CEO and Founder Hosam Arab told Arab News in an exclusive interview.
“We're looking to expand our Tabby Card offering to other operating markets outside of the UAE. We're also building toward consumer financial products to help people do more with their money,” he said.
The Tabby virtual card is a Visa card that allows shoppers to split their purchases into four payments at select in-store locations.
Tabby managed to issue over 150,000 cards in six months with in-stores currently making 10 percent of total sales.
The funding round saw participation from Sequoia Capital India, STV, Mubadala Investment Capital, Arbor Ventures, Endeavor Catalyst, and PayPal Ventures as its first investment in the Gulf Cooperation Countries region.
“We’re excited to grow with an incredible set of investors who believe in the opportunity to create a healthier relationship with money for consumers in a region that’s ripe for change,” Arab stated.
The company’s virtual card is most probably set to land in Saudi Arabia as 85 percent of its sales volume is happening in the Kingdom.
In September 2022, General Manager at Tabby Saudi Arabia, Abdulaziz Saja, told Arab News that the company was planning to launch the virtual card in the Kingdom after witnessing the product’s success in the UAE.
“Tabby will continue to lead the generational shift towards fair and transparent financial products in the Middle East and North Africa region with every new product matching customer needs,” Arab stated.
The company works with over 10,000 brands including nine out of the 10 largest retail groups in the Middle East and North Africa, and more recently launched with Noon, one of the region’s largest e-commerce marketplaces.
Established in 2019, Tabby provides users with buy now, pay later options to facilitate a financially friendly shopping experience online and offline.
The company operates in the UAE, Saudi Arabia, Kuwait, and recently expanded into Egypt with plans to expand even further and cover the rest of the Gulf Cooperation Council.
Last year, Tabby managed to attract more than 3 million active shoppers on its platform and grew its revenue by five times over the previous year.