Tabby, the Buy Now Pay Later (BNPL) fintech that is headquartered in the UAE has announced that it has raised $50 million in its Series B funding round which was led by Global Founders Capital and STV.
Others involved in the funding round included Delivery Hero, CCVA, Arbor Ventures, and others. It is reported that the company would be using these funds to continue building on a wide range of products and continue to add new features to its platform. Expansion and growth into other parts of the GCC are also on the cards as it continues to push its products to the users which have turned out to be quite popular especially in Saudi Arabia, where the bulk of its customers reside.
Hosam Arab, CEO, and Co-founder at tabby stated: “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.”
The BNPL segment has been growing very strongly globally over the last year or so and we have been seeing the entrance of major players into this space which includes Klarna, Paypal, and Apple as well. But the MENA region is a space where other players would be finding it difficult to penetrate in the coming months and that is likely to be a major plus for the company which can then seek to dominate the space as it is unlikely to face any stiff competition for its target market.
Ahmad Alshammari, Partner at STV, remarked: “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.”
The company has raised more than $130 million over the last 2 years as the investors also realize the potential of this region for growth and also of the company as well. Tabby also offers interest-free installments for its users who make purchases both online as well as offline which means that it has managed to capture a large part of the available market already.