Tabby, a FinTech startup that provides consumers across the UAE and Saudi Arabia with the flexibility to pay for their online and offline purchases either in a deferred single payment or in multiple installments has raised $7M in funding. The round was led by Raed Ventures. This news comes over 6 months after they raised their Seed round last November.
An overview of Tabby's recent funding insights:
• Tabby’s mission is to empower consumers to easily buy what they want, when they want, while remaining in control of their finances. The Pay in Installments option gives customers the flexibility to pay for their purchases in multiple, interest-free installments without requiring a credit card.
• Tabby has partnered with over 20 regional e-commerce retailers including Abdul Samad Al Qurashi and Golden Scent.
• The investment will support the company’s entry into Saudi Arabia (KSA) and fund continued growth in the UAE as regional online consumer spend skyrockets due to COVID-19. The signing of key retail partner Apparel Group and other prestigious retailers underscores Tabby’s trajectory of growth and consumer appeal.
In line with this focus on online consumer spend, Co-Founder and CEO of Tabby, Hosam Arab told MAGNiTT, "COVID-19 has accelerated the adoption of online shopping by consumers and with the slowdown offline, the shift of retailers online. We don’t see that trend slowing down after COVID goes away. Many customers will have tried to shop online for the first time ever during this time, and for the most part, will have appreciated the convenience and value online shopping offers. This will create stickiness that is unlikely to dissipate."
Delve into the full press release below.
Tabby, the UAE-based FinTech startup and the region’s first Buy Now Pay Later solution, today announced it has raised $7M to fund its growth and launch its product in Saudi Arabia. The funding round was led by Raed Ventures with participation from MSA Capital and existing investors Arbor Ventures.
Launched in 2019 by Hosam Arab, previously co-founder and CEO of online retail site Namshi, with an initial $2M in seed funding, Tabby’s mission is to empower consumers to easily buy what they want, when they want, while remaining in control of their finances. Tabby helps retailers across the UAE and KSA boost their sales by offering their customers flexible payment solutions. Tabby’s Pay Later option offers an alternative to cash on delivery (COD) by allowing customers to purchase products online using only their mobile phone number and email address and requires no pre-registration or credit card to use. Tabby’s Pay in Installments option gives customers the flexibility to pay for their purchases in multiple, interest-free installments without requiring a credit card.
E-commerce in the GCC is rapidly growing as a result of COVID-19 as consumers shift their purchase behavior to do more of their shopping online. Coupled with the likely negative financial impact on businesses and consumers in the months to come, Tabby provides a timely and much needed financial product to help customers better manage their spending by splitting their purchases into multiple, zero-interest installments while shopping at their favorite retail stores. This innovative payment solution will empower consumer spending, increase customer loyalty, and open up retailers to new customers across the region.
Hosam Arab, co-Founder and CEO of Tabby said: “We are very pleased to bring our best-in-market solution to Saudi Arabia at a time when consumers and merchants alike will be strapped for cash. This funding will give our merchant partners further security and assurance that we are sufficiently capitalized to support their sales.”
Saed Nashef, Raed Ventures’ Founding Partner said: “Hosam and his team have built an impressive product that structurally solves key friction points in a transaction for both consumers and merchants, which is especially relevant given the current pandemic. We’re very excited to partner with Tabby, and support its timely launch in Saudi Arabia.”
Tabby also marks this chapter of growth by signing an agreement with Apparel Group, one of the largest retail groups in the Middle East to offer its solution on 6thStreet, Tommy Hilfiger, Aldo and the rest of Apparel Group’s online portfolio.
Dharmin Ved, CEO of 6th Street said “Given the prevalence of cash on delivery in our market and the complexity it presents to our operations, we were keen to partner with Tabby to provide our customers with easy installments and a simple alternative to COD that takes the hassle out of the process yet keeps our customers happy.”
Tabby has partnered with over 20 regional e-commerce retailers including Abdul Samad Al Qurashi and Golden Scent with a number of partnership announcements to follow soon.
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The Lebanese startup ecosystem saw an increase of 18% in startup deals between 2018 and 2019, with 45 deals taking place. While the number of investments has gone up, the majority of these involve Early-Stage companies. Discover more details in our 2019 Lebanon Venture Investment Report.