Leading Middle Eastern fintech company Tabby has secured a $160 million funding round, doubling its valuation to $3.3 billion as it gears up for expansion beyond its core Buy Now, Pay Later (BNPL) model and prepares for a potential initial public offering (IPO).
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The latest funding round was led by Wellington Management, with participation from Blue Pool Capital, STV, Mubadala Investment Company, PayPal Ventures, and Arbor Ventures. This round comes just months after Tabby raised $200 million in debt financing from JPMorgan Chase & Co., further solidifying its financial position.
Tabby’s Growth and Expansion Plans
Founded in 2019, Tabby has rapidly become a dominant player in the BNPL sector across the Middle East and North Africa (MENA) region, offering consumers an alternative to credit cards by allowing them to make purchases in installments without interest.
However, CEO and co-founder Hosam Arab stated that Tabby is evolving beyond BNPL, aiming to become a broader financial services platform. The company has recently introduced Tabby Card, a virtual and physical payment card that enables customers to split in-store purchases into installments, further strengthening its foothold in everyday transactions.
Additionally, Tabby is exploring services such as personal finance management, merchant lending, and new payment solutions, positioning itself as a full-fledged fintech player rather than just a BNPL provider.
IPO Plans and Market Outlook
With a growing user base of over 10 million active customers and 30,000 merchant partners, including major retailers like IKEA, H&M, and Adidas, Tabby is now eyeing an IPO as early as 2025 or 2026. While the company has not yet confirmed where it will list, industry insiders speculate that Dubai or Saudi Arabia could be potential markets, given the region’s increasing support for fintech startups.
An IPO would provide Tabby with additional capital to scale operations, expand geographically, and develop new financial products, aligning with its long-term vision to be the leading digital financial ecosystem in MENA.
Competition and Challenges
Tabby faces growing competition in the BNPL and fintech space, with regional rivals like Tamara (Saudi Arabia) and Postpay (UAE), as well as global giants like Apple Pay Later, Klarna, and Affirm. However, its strong financial backing, deep regional market penetration, and expansion beyond BNPL put it in a competitive position.
What’s Next for Tabby?
As Tabby continues to scale, its focus will be on:
- Enhancing its financial services portfolio beyond BNPL.
- Expanding into new markets beyond the Middle East.
- Strengthening partnerships with global and regional merchants.
- Preparing for a successful IPO that will mark a major milestone for MENA’s fintech industry.
With a $3.3 billion valuation and a rapidly growing ecosystem, Tabby is shaping up to be one of the most influential fintech players in the region, setting the stage for a new era in digital payments and financial innovation.