Tabby raises USD 160 mln, hits USD 3.3 bln valuation

The round was led by existing investors Blue Pool Capital and Hassana Investment Company, with additional participation from STV and Wellington Management.

Since its previous funding round in October 2023, Tabby has nearly doubled its annualised transaction volume to exceed USD 10 billion while maintaining profitability. The company has been expanding its financial ecosystem, most notably through the acquisition of the Saudi-based digital wallet Tweeq.

Tabby has also introduced several new offerings, including:

• Tabby Card, enabling flexible payments beyond traditional checkout;

• Tabby Plus, a subscription-based program;

• Extended Buy Now, Pay Later (BNPL) plans, provide longer-term installment options;

• Tabby Shop, a tool to help users find deals;

• Tabby Care, a buyer protection program.

These additions improve Tabby’s suite of financial products, reinforcing its role in shaping the digital payment landscape in MENA.

Strategic use of funds

The newly secured capital will be used to accelerate the expansion of Tabby’s financial services, including digital spending accounts, payment solutions, cards, and money management tools. The company aims to contribute to Saudi Arabia’s Vision 2030 initiative by driving financial inclusion and advancing the Kingdom’s transition to a cashless economy.

With a strong financial foundation and growing user base, Tabby is positioning itself for an upcoming IPO. The company now serves over 15 million registered users and partners with more than 40,000 sellers, reinforcing its influence in the region’s fintech sector.

This latest funding round marks a significant step in Tabby’s growth trajectory, further establishing it as a key player in the evolution of digital financial services in MENA.

The popularity of BNPL among MENA consumers

The rapid rise of BNPL in MENA reflects a broader shift toward digital finance and alternative credit solutions. With economic diversification efforts underway in key markets like Saudi Arabia and the UAE, BNPL has positioned itself as a vital tool for increasing financial inclusion and driving cashless payments.

Recent reports suggest that BNPL adoption in the region has surged by over 60% in the past two years, with younger demographics leading the charge. Millennials and Gen Z consumers, who prioritise convenience and interest-free financing, are the primary users of BNPL services. Retailers, in turn, are integrating BNPL at checkout to boost conversion rates and customer loyalty.

While BNPL remains largely unregulated in many MENA markets, authorities are beginning to introduce measures to ensure responsible lending and financial stability. The Saudi Central Bank (SAMA) and the UAE’s Central Bank have started implementing oversight mechanisms to protect consumers from over-indebtedness and ensure transparency in BNPL agreements.