"We Got Funded!" Dubai-Based Tabby Raises US$58 Million In A Series C Funding Round Tabby has become the first fintech startup in the GCC to receive funding from PayPal Ventures.
You're reading Entrepreneur Middle East, an international franchise of Entrepreneur Media.
Tabby, a Dubai-based shopping and financial services app, has raised US$58 million from Sequoia Capital India, STV, PayPal Ventures, Mubadala Investment Capital, Arbor Ventures, and Endeavor Catalyst in a Series C round, which values the company at $660 million.
The new investment will be used to expand Tabby's product line into next-gen consumer financial services, such as products that support day-to-day spending like food and travel.
"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," said Hosam Arab, co-founder and CEO of Tabby. "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."
With operations in Saudi Arabia, UAE, Egypt, and Kuwait, Tabby offers flexible payments online and in stores for over 10,000 brands, including nine out of the 10 largest retail groups in the MENA region, to over three million active shoppers. Arab believes that Tabby's business model is sustainable, because it charges retail partners, "so that they can bring their customers an unparalleled shopping experience."
With operations in Saudi Arabia, UAE, Egypt and Kuwait, Tabby offers flexible payments online and in stores for over 10,000 brands. Source: Tabby
Having noticed a 30%-40% adoption rate of its buy-now-pay-later (BNPL) concept when compared to other payment methods, Arab points out that there is a clear need and demand for it in the GCC. "We didn't expect how important convenience, design, and speed of the checkout experience would be to our customers," he said. "Tabby is not just a utility tool based on a need, but now a preference and expectation of a seamless shopping experience."
Another advantage Tabby offers its users is in allowing them to split their purchases into interest-free payments and with no hidden fees. Arab explains that with credit penetration in the MENA region being significantly lower than in other developed markets, there's a real gap and opportunity for Tabby from a demand perspective.
"With credit cards making over 80% of their revenue from interest and fees, people are losing confidence in the companies that promised them a better life," Arab explained. "From the outset, we built in trust as a fundamental part of the Tabby experience. When our customers pay over time with no interest or fees, we're betting on people's success, not their failure."
Related: "We Got Funded!" UAE-Based Fintech Startup Alaan Raises US$4.5 Million
