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The KSA and UAE-based Buy Now, Pay Later provider Tabby has raised $50M in a new equity round. The Series B round was led by Global Founders Capital and STV with participation from Delivery Hero, and CCVA. Existing investors Arbor Ventures, Mubadala Investment Capital, Raed Ventures, Global Ventures, MSA Capital, VentureSouq, Outliers VC, JIMCO, and HOF also participated in the Series B financing.
Launched in 2019, The rising FinTech firm set forth to make shopping more rewarding by empowering people with the freedom to get what they want and pay flexibly. Tabby integrates with retailers to allow their customers to shop at their online and physical stores with interest-free installments. The funding round values the company at $300M. This comes one month after tabby raised $50M in debt financing bringing tabby's total funding to over $130M in less than two years.
Based on MAGNiTT's flagship UAE H1 2021 Venture Investment Report, the Fintech sector has observed exemplary growth in the UAE where the sector jumped 1 rank to become the second-most funded in the country after garnering a 49% growth in H1 2021 YoY. Remarkably, 2 of the UAE's top 3 exits in H1 2021 were by FinTech startups, including the $16M acquisition of Spotii and Triterras acquisition of Invoice Bazaar. This latest investment adds to the many records in the FinTech scene, further establishing the remarkable potential of UAE and MENA-based Fintech Startups.
Tabby has garnered more than 400,000 active shoppers on their platform with 3,000 daily downloads making it one of the highest-ranked shopping apps in the markets it operates. Highlighting this rapid growth, Tabby CEO and Co-founder Hosam Arab commented “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.”
Notably, this investment marks Delivery Hero’s first fintech investment in MENA. Having one of the largest customer bases operating key regional food & beverage delivery platforms including Talabt, Instashop, and Hunger Station, Delivery Hero is the ideal investor when it comes to Tabby’s business expansion and platform development. Commenting on this power partnership Mark Venema, Senior Vice President Strategy of Delivery Hero, stated “At Delivery Hero, we believe in the power of entrepreneurship. 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.”
The funding will help tabby further service the growing demand for its BNPL products as customer usage continues to soar, especially in Saudi Arabia, tabby's largest market. Tabby is also utilizing its newly acquired funds to further develop tabby’s product portfolio and expand into new markets. This funding round validates Taby’s impressive growth potential as STV Partner, Ahmad Alshammari concluded "As the global BNPL market is expected to grow at ~30% 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, e-commerce growth, and access to credit. Our doubling-down shows our strong belief that tabby is the market leader in MENA and that they will continue to drive BNPL’s growth across the region by enabling buyers and merchants alike."
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