United Arab Emirates-based online payments provider Tabby has secured $150 million in debt financing to support its growth and product expansion in the Middle East and North Africa (MENA) region.
The credit facility came from from Atalaya Capital Management and existing investor Partners for Growth (PFG), according to a press release. The deal marks Atalaya Capital Management’s first venture in MENA and brings Tabby’s total capital raised to date to $275 million after a Series B extension earlier this year,
Tabby, which provides buy now, pay later (BNPL) solutions and other eCommerce services, works with over 4,000 global brands and small- to medium-sized businesses (SMBs), the release stated. Major retailers include Adidas, IKEA, H&M, Bath & Body Works, Nike and Swarovski, the release stated.
MENA’s market dynamics make BNPL more relevant than in developed markets where players continue to face challenges. In Saudi Arabia, for example, less than 20% of consumers have a credit card, according to the release. In comparison, over 70% of U.S. adults do.
BNPL providers like Tabby can offer more accessible and lower-cost lending. It was this opportunity that Tabby CEO and Co-Founder Hosam Arab wanted to tap into when he launched the business in February 2020.
As he told PYMNTS in an interview, other payment methods “lacked flexibility, [and] they were high on friction, so most customers essentially just chose to pay for the eCommerce purchases in cash, which for an online retailer presented a lot of complexity and obstacles to growth.”
Since Tabby’s debut, BNPL has exploded in MENA and the wider Gulf Cooperation Council (GCC) region,with the arrival of new competitors vying for a slice of the pie. But Arab said the brand name recognition and market share Tabby has gained as part of its first mover advantage continues to give the firm a leg up on the growing competition.
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