Tabby, the buy now pay later platform backed by Abu Dhabi's Mubadala, has raised $160 million at a valuation of $3.3 billion, making it the most valuable financial technology start-up in the Middle East and North Africa region.
The series E round was led by Hong Kong's Blue Pool Capital and Riyadh-based Hassana Investment Company, both existing investors, in addition to participation from Saudi Technology Ventures and Boston-based Wellington Management, Tabby said on Wednesday.
Dubai-based start-up industry tracker Magnitt confirmed Tabby's milestone, telling The National: The company is now "the most valuable VC [venture capital]-backed FinTech in Mena".
The funding comes in the run-up to Tabby's planned initial public offering in Saudi Arabia. The company has yet to announce any timeline for its IPO. It is in talks with HSBC Holdings, JP Morgan Chase and Morgan Stanley on the potential listing, Bloomberg reported on Monday.
"This financing round positions Tabby strongly as it prepares for its upcoming IPO, signalling a pivotal step in its growth journey and reinforcing its ability to deliver the next generation of financial services across the Middle East," the company said.
Tabby will be using the new funds to "primarily" accelerate the expansion of its financial services, including digital spending accounts, payments, cards and money management tools, in addition to helping drive Saudi Arabia's cashless economy under the Vision 2030 economic diversification programme, it added.
“This investment allows us to accelerate our roll-out of products that make managing money simpler and more rewarding for our customers," Hosam Arab, chief executive and co-founder of Tabby, said.
The BNPL business model, which allows consumers to make online purchases instantly and spread their payments out over interest-free instalments, has boomed since the onset of the Covid-19 pandemic, driven by the millennial and Generation Z cohorts.
The Middle East BNPL market is expected to hit $90.42 billion by 2030 at a compound annual growth rate of nearly 35 per cent, according to the Hong Kong-based Business Information Industry Association.
Tabby, which is active in Saudi Arabia, the UAE and Kuwait, made history in November 2023 when it achieved unicorn status – reaching a valuation of more than $1 billion – after it raised $200 million in a series D funding round.
That vaulted the company into a highly elite group of billion-dollar start-ups from Mena, which includes Careem, Kitopi, Swvl and Emerging Markets Property Group, STC Pay and Fawry.
In December 2023, Tabby secured $700 million in debt financing in the form of receivables securitisation from JP Morgan. In March 2022, it raised $54 million from Sequoia Capital India and STV.
Tabby currently has more than 15 million users and over 40,000 brands, including Amazon, Samsung and Noon, utilising its platform and driving about $10 billion in annual sales, according to company data.