Dubai-based buy now, pay later (BNPL) platform, tabby has raised $54 million from an extension round co-led by Sequoia Capital India and Saudi Arabia’s STV, as it seeks to expand its operations globally.
The new funding follows tabby’s initial Series B round of $50 million announced last August that valued the company at $300 million. The BNPL provider has raised $104 million in total Series B funding and plans to use this extension round to expand its consumer product offering and facilitate its international expansion.
Existing investors including Mubadala Investment Capital, Arbor Ventures and Global Founders Capital also participated in the company’s extended funding round.
“The rapid adoption we continue to see today shows the urgency of consumer demand for flexible and honest payment experiences over predatory interest-driven credit. We are delighted to have Sequoia Capital India support our mission towards creating financial freedom as we embark on a key growth chapter in our journey.”
The BNPL business model, which enables consumers to make online purchases instantly and spread their payments out over interest-free installments, has boomed since the onset of the COVID-19 pandemic.
The industry is expected to grow 10 to 15 times by 2025 globally, topping $1 trillion in annual gross merchandise volume by some estimates, according to a report by New York data research consultancy CB Insights.
Founded in the UAE, tabby empowers shoppers with the financial freedom to access the products they want and need, while allowing them to maintain financial health and control. Since its inception, it has signed agreements with more than 3,000 global brands and small businesses, including Adidas, Ikea, Bloomingdale’s, Marks & Spencer, Home Centre and Toys R Us.
The BNPL provider has more than 1.1 million active shoppers in Saudi Arabia and the UAE. The company has so far raised more than $180 million in debt and equity, which includes $150 million it raised last year.
“The team at tabby have built a strong, customer-first, and market-leading BNPL business in Saudi Arabia and the UAE, and we’re excited to join their journey as they continue to build a consumer-focused financial services business across the region,” Mr. G V Ravishankar, Manager Director of Sequoia India stated.
“We are strong believers that the company will continue spearheading BNPL’s growth across the region, fuelled by the rapid switch to digital payments, eCommerce growth and remarkable product vision and team,” said Mr. Ahmad Alshammari, Partner at STV.