Riyadh-Based Buy Now, Pay Later Platform Tabby Raises $200 Million

Tabby, a buy now, pay later (BNPL) platform based in Riyadh, has raised $200 million in its Series D funding round, achieving a valuation of $1.5 billion.

This has made Tabby the first FinTech unicorn in the region, the firm said in a Wednesday (Nov. 1) post on LinkedIn.

“Tabby set out with a purpose to reshape financial services — one that’s fair and responsible — and with this investment we can advance our mission across Saudi Arabia and the UAE [United Arab Emirates],” the firm said in the post.

Tabby works with over 30,000 brands, including Adidas, Amazon, H&M and SHEIN, TechCrunch reported Wednesday. The platform offers BNPL services at checkout and in-store to over 10 million users across Saudi Arabia, the UAE and Kuwait.

One of the key factors contributing to Tabby’s profitability in the Gulf Cooperation Council (GCC) region is the limited access to credit alternatives for consumers, according to the report. Unlike in developed markets with abundant credit options, where BNPL can be seen as a convenience, in the Middle East, it addresses the need for accessible credit.

Tabby caters to two distinct customer segments, the report said. The first segment comprises individuals in markets like Saudi Arabia, where credit card penetration is low, with only around 15% of the population having credit cards. The second segment includes customers who find Tabby’s tokenized payment method convenient. By addressing concerns related to impulsive spending and unsustainable debt caused by BNPL services, Tabby has managed to maintain solid payment performance.

Tabby’s largest market is Saudi Arabia, representing 80% of its customer base and contributing significantly to its annualized transaction volume of over $6 billion, per the report. The company is preparing for an initial public offering (IPO) on the Saudi stock exchange and shifted its headquarters from Dubai to Riyadh to enhance its presence in its largest market.

In the UAE, Tabby has seen significant adoption of its payment method, with over 4,000 stores now accepting Tabby Cards for in-store purchases, according to the report.

Tabby recently launched Tabby Shop, a platform showcasing over 500,000 products from thousands of brands, the report said.

Looking ahead, Tabby plans to invest further in its current markets by offering customers additional products that enhance their financial well-being, per the report. This includes introducing various credit options beyond its network and expanding its product offerings to encompass a broader range of financial services, such as payments and savings.

This funding round comes about 11 months after Tabby raised $58 million in its Series C round. The firm said at the time that the Series C round valued it at $660 million and that it would use the fresh capital to expand its product line and support its regional growth.

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