tabby, the Middle East's leading buy now, pay later (BNPL) provider, announced that it has extended its Series B capital raise by $54m in a round led by Sequoia Capital India and STV, with additional participation from existing investors Arbor Ventures, Mubadala Investment Capital and Global Founders Capital (GFC).
tabby empowers shoppers with the financial freedom to access the things they want and need, while allowing them to maintain financial health and control. This investment will support tabby’s international expansion and further expand its consumer product offering.
Growth of BNPL platforms
While BNPL is still in its relative infancy in the GCC, the sector has witnessed one of the fastest rates of consumer adoption globally with 24% of consumers in the region reporting having used the option in 2021. This fundraising clearly illustrates the growth prospects for the payment method in the region.
A starting point for hundreds of thousands of shoppers
tabby has over 1,100,000 active shoppers in Saudi Arabia and the UAE, collaborating with over 3,000 brands and driving over 3 million clicks to its partners every month. Moreover, tabby reports that online retailers using its payment solution have witnessed a more than 10 percentage point decline in the usage of cash on delivery (COD) by their customers.
Ranked among the top 10 shopping apps in Saudi Arabia and the top 20 in the UAE, tabby has partnered with seven of the 10 largest retail groups in the GCC, more than any other regional BNPL player.
Hosam Arab, CEO and Co-Founder of tabby, said: “The rapid adoption we continue to see today shows the urgency of consumer demand for flexible and honest payment experiences over predatory interest-driven credit. We are delighted to have Sequoia Capital India support our mission towards creating financial freedom as we embark on a key growth chapter in our journey.”
GV Ravishankar, Manager Director, Sequoia India, said: “Consumer-centric digital financial services provided real-time and without friction can unlock growth of commerce and benefit the ecosystem as a whole and we continue to remain bullish on businesses that can do so at scale. Hosam, Daniil and the team at tabby have built a strong, customer-first and market-leading BNPL business in Saudi Arabia and the UAE, and we’re excited to join their journey as they continue to build a consumer-focused financial services business across the region.”
Ahmad Alshammari, Partner, STV, said: “We are proud to have partnered with Hosam and Daniil in their Series-A, and more proud to have deepened our partnership with tabby in all funding rounds since. We are strong believers that the company will continue spearheading BNPL's growth across the region, fueled by the rapid switch to digital payments, e-commerce growth, and remarkable product vision and team, cementing its position as the market leader for BNPL in MENA.”
2021 was an eventful year for tabby raising over $150 million in debt and equity bringing the company’s total fundraising to date to over $180 million.