UAE – Mubasher: Dubai-based shopping and financial services startup Tabby has raised $58 million in a Series C funding round, with a valuation of $660 million, according to a press release.
The round was led by Mubadala Investment Capital, Sequoia Capital India, STV, Arbor Ventures, and Endeavor Catalyst. PayPal Ventures, the global corporate venture arm of PayPal, also participated in the transaction that marked its first investment in the GCC startups.
Tabby will use the funding to widen its product line into next-generation consumer financial services and anchor the company’s growing operations.
Established in 2019, Tabby provides users with a buy now pay later (BNPL) facility for shopping online and offline. The platform is currently operating in Saudi Arabia, the UAE, Egypt, and Kuwait
The UAE-based company is collaborating with more than 10,000 international brands that include nine out of the 10 largest retail groups in the MENA region.
In 2022, the app exceeded 3 million active shoppers and witnessed an annual growth of 5x in revenue, besides scaling up its business in Egypt.
The fintech issued more than 150,000 Tabby Cards only six months after launching its cards programme, which made the in-store sales account for over 10% of the company’s volume.
Hosam Arab, CEO and Co-founder of Tabby, noted: “With rising interest rates and growing inflation, it has never been more important for people to have access to payment flexibility to stay in control of their finances.”
“Despite downward pressure on fintech valuations, our business continues to sustainably scale as we lead the generational shift towards fair and transparent financial products in MENA,” Arab continued.
GV Ravishankar, Managing Director of Sequoia India, said: "Over the next few years, it [Tabby] has the opportunity to offer several innovative products to its consumers to improve access while creating more affordability.”