Consumer demand for credit options varies in regions, and for fintechs, understanding these differences is essential for survival. In developed markets, where credit cards are common, consumers often see the purchase now, pay bids later (BNPL) positively due to their flexible installment options.
But in developing markets like the Middle East, where credit card penetration is low, but spending power is high, BNPL has an even more convincing use case. The model is gaining such a strong attraction that Tabby, one of the region’s pioneers, has now become the most valuable fintech in Mena after securing $ 160 million in a series of $ 3.3 billion.
Blue Pool Capital Capital Investor and Investment Management Firm Hassana Company Investment Company Leading funding. Saudi StV -based investor and Welington management also participated.
The round comes less than 18 months after Tabby raised $ 200 million in a series D round when it was estimated at $ 1.5 billion. Since then, Tabby – which says it is profitable – has doubled its rating and the volume of the annual transaction, which now exceeds $ 10 billion, according to the company.
“As our volumes have doubled, the business benefit has increased significantly,” says Tabby’s co -founder and CEO Hosam Arab. It attributes this increase to the onset of new products, which have prompted higher frequency of use. “Customers rely on us only for electronic expenses or (sales points). Now, especially in the United Arab Emirates, they see Tabby as a tool to manage all their expenses, whether it’s buying a cup of coffee or taking a Uber trip, “he adds.
Switch to broader financial services
Initially it focused on online transactions, Tabby later expanded to payments inside the stores, then deeper into retail and financial sales services. Its Tabby Card now allows users to spend flexibly, while Tabby Plus offers a rewards program based on reconciliation. Meanwhile, Tabby Shop offers long -term payment plans to help users use better deals.
Fintech based in Riyadh, which now supports 40,000+ brands and traders-included Amazon, Adidas, Ikea, Samsung and noon-expanding its product line has helped increase its users’ base to 15 million customers Throughout Saudi Arabia, the United Arab Emirates, and Kuwait, a 50% increase since October 2023.
Tabby is not stopping with credit. Last year, she won Tweeq, a Saudi -based digital portfolio provider, as part of his plan to expand to broader financial services, including digital accounts, payments and money management tools, offers that match the country’s push towards an economy without money.
Further on its road map, Tabby is watching shipments, an area where there is already a strong positioning. With Saudi Arabia and the United Arab Emirates among the world’s largest shipments markets, Tabby’s client base – consisting of immigrants – shows a natural opportunity.
While the Arabs refuse to share specific details, Tabby may initially aim for the UAE Corridor of the UAE-Indi, one of the most loaded shipments routes globally. He notes that flexibility will be essential in providing Tabby delivering services. Unlike traditional shipment providers, Fintech plans to allow users to share shipments over time, an option offered by some competitors.
Competition plans and IPO for the creation of IPO
Tabby competed in the region with Tamara backed by coat in the BNPL space. With deliveries, she will face new competition from global players like Revolut, a UK -centered NeoBank, who announced plans to enter the $ 44 billion market of the United Arab Emirates last September.
However, Arab is convinced that the scale, local market expertise, trusted brand and deep tabby client relations have accumulated as one of the largest financial services platforms of the region, with a large client base and a wide network trader, will work in his favor.
At the front of IPO, this round of the series and may be Tabby’s latest private rise before you go public in the Saudi exchange. This was also supposed to be the case during its D series, but market conditions may have delayed those plans.
“We are opportunists with funding rounds,” says Arab. “This was the right discussion with the right partner at the right time, so we decided to raise now. That’s, our plans for an IPO remain unchanged. We are quite serious about it, and if the markets do not move significantly, we have no likely to collect another private round. “
Investors’ demand for IPO technology is increasing. The mass list of Talabat in Dubai last year showed the region’s appetite for high growing beginnings. Meanwhile, the expected IPO of Klarna in April can serve as a bell for BNPL companies, signaling what is ahead for the sector. (Already, Amazon announced plans to buy Indian Axio player.)
Right now, Tabby, which has raised over $ 1 billion in capital and debt, has focused on scaling its financial ecosystem – and when the time is right, it aims to be the next list of the region’s main technology. For Bloomberg, Fintech, who transferred its headquarters from Dubai to Riyadh for this purpose, employed three banks to work in the deal.
