Sequoia Capital India, STV, PayPal Ventures, Mubadala Investment Capital, Arbor Ventures, and Endeavor Catalyst all participated in the round, which values the Dubai-based buy now, pay later (BNPL) firm at $660 million.
In a press release announcing the raise, the Middle East and North Africa (MENA)-focused FinTech said the fresh capital would be used to expand its product line and support its regional growth.
The latest funding adds to a sizable war chest thanks to a $150 million credit facility provided by Atalaya Capital Management and Partners for Growth.
Tabby co-founder and CEO Hosam Arab said: “With rising interest rates and growing inflation, it has never been more important for people to have access to payment flexibility to stay in control of their finances. Despite downward pressure on FinTech valuations, our business continues to sustainably scale as we lead the generational shift towards fair and transparent financial products in MENA.”
When Arab spoke to PYMNTS in 2021, he said that demand for BNPL services in the region was fueled by the growth of eCommerce and the difficulties that other payment methods present.
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Those 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,” Arab explained.
Since 2021, the company said that Tabby has gone on to sign agreements with some of the biggest players in MENA eCommerce, helping it reach over three million shoppers. The company said it works with over 10,000 brands, including nine out of the 10 largest retail groups in the region.
Most recently, in November, Tabby announced that it had entered into a partnership with noon.com, the eCommerce marketplace that rivals Amazon in the United Arab Emirates (UAE), Saudi Arabia and Egypt.
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