Buy Now Pay Later (BNPL) unicorn, Tabby, has successfully raised $200 million in a Series D round, doubling its valuation to $1.5 billion from $660 million in January. The funding round was led by Wellington Management and included participants such as Bluepool Capital, STV, Mubadala Investment Capital, PayPal (NASDAQ:PYPL) Ventures, and Arbor Ventures.
Tabby is planning to expand its product offerings around financial services and explore mergers and acquisitions within existing markets. The fintech firm operates in Saudi Arabia, the United Arab Emirates (UAE), and Kuwait, serving 10 million registered users and over 30,000 brands. Despite global economic uncertainties affecting the BNPL sector, Tabby has shown resilience due to strong repayment behavior from its customers.
The company is also preparing for an initial public offering on the Tadawul, the Saudi stock exchange. This move is part of Tabby's broader expansion strategy in Saudi Arabia and the UAE. The firm manages $6 billion in annualized transaction volume and competes with firms like Tamara.
Tabby's growth contributes to the booming global BNPL market which is forecasted to reach $565.8 billion by 2026. The company joins other Middle East and North Africa (MENA) unicorns like STC Pay, Fawry, Careem Kitopi Swvl, and Emerging Markets Property Group in supporting the UAE's Entrepreneurial Nation 2.0 initiative which aims to create 20 unicorns by 2031.
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