Dubai-based BNPL Tabby raises $50 million in debt financing
By Leandra Monteiro
According to media reports, Dubai-based buy-now, pay-later company Tabby has raised $50 million in debt financing from Partners for Growth (PFG). It is among the largest ever such facilities for a FinTech start up in the MENA region.
The company, which was founded in 2019 by Hosam Arab, former CEO and co-founder of online retailer Namshi, plans to use the funds to expand its lending capacity and support company growth, with the intention to grow the size of the facility along with the company’s underlying sales.
The Buy-now, pay-later facility enables customers to buy goods and then pay for them in instalments or after a certain period of time, free of interest. Tabby’s services are available in the UAE and Saudi Arabia.
In a statement release by Tabby, the company said the facility represents a significant milestone in both the region’s start-up ecosystem and the advancement of its FinTech landscape.
According to media reports, Max Penel, Investment Director at PFG said, “Tabby is one of the fastest growing companies in the MENA region and they have an attractive market opportunity ahead. We are excited to support the Tabby team and provide financing that can enable tabby to scale the platform, harnessing the continuous growth of the buy now pay later sector both regionally and globally.”
“As our transaction volumes and merchant numbers have continued to surpass all our expectations, it was essential for us to partner with an organization that would support our current and long-term growth,” said Hosam Arab, CEO of tabby.
Saudi competitor Tamara also recently secured $110 million in debt and equity financing from checkout.com in one of the Asia’s largest start-up investments to date. In addition, Australia’s Zip Co. Ltd. announced last month it was paying about $16 million to buy the shares it didn’t already own in Spotii, another big buy-now, pay-later player in the United Arab Emirates.
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