Home » Companies » Tabby, The Buy Now Pay Later Platform Reaches a Unicorn Valuation of $1.5 Billion
Tabby, The Buy Now Pay Later Platform Reaches a Unicorn Valuation of $1.5 Billion
Tabby, The Buy Now Pay Later Platform Reaches a Unicorn Valuation of $1.5 Billion

Tabby, the buy now, pay later platform has reached a unicorn valuation of $1.5 billion joining an elite club of billion-dollar startups from the Middle East and North Africa. The company plans to list on the Saudi Tadawul stock exchange after announcing plans to move its Headquarters to Riyadh. 

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Tabby’s Position in the Billion-Dollar Club

With a staggering valuation exceeding $1.5 billion, Tabby now stands shoulder to shoulder with other prominent MENA unicorns such as the UAE’s Careem, Kitopi, Swvl, and Emerging Markets Property Group, Saudi Arabia’s STC Pay, and Egypt’s Fawry.

Tabby’s Expansion Plans

Image credit Tadawul

The recent investment is set to propel Tabby’s expansion efforts in Saudi Arabia and the UAE – two of the Arab world’s largest economies. This strategic move is also part of Tabby’s preparation for a proposed initial public offering (IPO) on the Tadawul Saudi Stock Exchange.

In September, Tabby declared its decision to relocate to Saudi Arabia as part of its IPO preparations. However, further details regarding its IPO plans remain under wraps for now.

Investors in the Latest Funding Round

The Series D funding round was led by US-based Wellington Management. Other participants included Hong Kong’s Blue Pool Capital and existing investors such as Abu Dhabi’s Mubadala Investment Capital, Saudi Arabia’s STV, PayPal Ventures, and Arbor Ventures.

Tabby’s Transaction Volume and Future Plans

Image credit Tabby

Currently, Tabby manages an annual transaction volume exceeding $6 billion. The newly secured funding is planned to be used for the continued development of its financial and shopping services for both consumers and retailers.

“We can now further our mission across Saudi Arabia and the UAE, thanks to this investment,” says Hosam Arab, CEO and co-founder of Tabby.

Popularity of the BNPL Business Model

The BNPL business model, which allows consumers to make instant online purchases and spread their payments over interest-free installments, has seen a tremendous surge since the COVID-19 pandemic. This trend is primarily driven by the millennial and Generation Z cohorts.

Projected Growth of the Global BNPL Market

According to GlobalData, the global BNPL market is expected to reach $565.8 billion in 2026, rising from an estimated $309.2 billion in 2023. This represents a compound annual growth rate of 25.5%.

Tabby’s Previous Funding Rounds

Tabby’s journey to unicorn status has been marked by several successful funding rounds. In January, it raised $58 million in a Series C round, bringing its valuation to $660 million. 

This achievement made Tabby one of the most valuable start-ups in the MENA region and the first in the GCC to receive funding from PayPal’s venture capital arm.

In August 2022, Tabby secured a credit line of $150 million from US-based Atalaya Capital Management and Partners for Growth, marking one of the largest credit lines obtained by a FinTech start-up in the GCC.

Tabby’s Position in the Market

Tabby operates in Saudi Arabia, the UAE, and Kuwait, with over 80% of its 10 million strong user base hailing from the kingdom. Despite the presence of other players like Postpay, Cashew, Spotii, and Tamara, Tabby continues to hold a significant share of the Middle East’s BNPL market.

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