Dubai-headquartered buy now, pay later (BNPL) provider Tabby has raised $50 million in a new equity round which values the company at $300 million turning it into one of the highest valued startups in the Middle East & North Africa (MENA) region.
The new funding round is led by Global Founders Capital and STV with participation from Delivery Hero, CCVA, and existing investors including Arbor Ventures, Mubadala Investment Capital, Raed Ventures, Global Ventures, MSA Capital, VentureSouq, Outliers VC, JIMCO, and HOF Capital.
Tabby’s Series B financing will be used to expand the fintech firm’s product portfolio and enter new markets. The investment marks Delivery Hero’s first fintech investment in MENA. The new funding comes one month after Tabby raised $50 million in debt financing bringing the startup’s total funding to over $130 million in less than two years.
“With global players consolidating the MENA BNPL space, we at tabby are proud to continue building a local business and work with investors who understand its value. This investment will enable us to deliver the most rewarding and relevant shopping experience for regional consumers and retailers.”
Tabby integrates with retailers to enable their customers to shop at their online and physical stores with interest-free installments. Its app has more than 400,000 active shoppers, with 3,000 daily downloads making it one of the highest-ranked shopping apps in the markets in which it operates. It works with more than 2,000 partners including global brands like Adidas, IKEA, SHEIN, VogaCloset and regional retail groups like Chalhoub Group, Al Futtaim Group, Landmark Group, and Apparel Group.
Commenting on the investment, Mr. Mark Venema, Senior Vice President, Strategy of Delivery Hero, said, “We are excited to be investing in tabby as our first fintech investment in MENA, a strategically important region for Delivery Hero. We see great potential in Tabby to drive the industry forward and are proud to be supporting the company on its growth journey.”
Mr. Ahmad Alshammari, Partner at STV, said, “As the global BNPL market is expected to grow at 30 percent CAGR over the next five years, we estimate that MENA will grow at least twice as fast, further accelerated by a rapid switch to contactless payments, eCommerce growth, and access to credit.”