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London Tech Week

Klarna rival from Dubai: BNPL startup Tabby secures $150M, largest funding for fintech in Gulf

Tabby
Image credits: Tabby

Tabby, Dubai-based payments and shopping app, has secured $150M in debt financing from Atalaya Capital Management and existing investor Partners for Growth (PFG). This marks Atalaya Capital Management’s first deal in the MENA region.

The announcement comes a few months after Tabby raised its Series B extension earlier this year. The latest round brings Tabby’s total capital to $275M.

Tabby will continue to provide MENA’s consumers access to otherwise unavailable credit without charging interest or other fees.

Hosam Arab, the CEO and co-founder of Tabby says, “Debt commitments from two reputable institutions is a validation of our strong track record and business model. As we near profitability, we’re fortunate to not have to raise equity under the current market conditions and are thrilled to partner with the like-minded people at PFG and Atalaya.”

Klarna’s Dubai rival

Founded by Daniil Barkalov and Hosam Arab in 2019, Tabby is a buy now, pay later company that allows consumers to shop and pay in 4 installments at no cost. The company works similar to Swedish buy now, pay later (BNPL) giant Klarna.

In May, the Dubai-based company announced the launch of Tabby Card, a first-of-its-kind solution in MENA, tapping into 90% of the offline retail opportunity.

Tabby has grown 10x in revenue, 8x in active customers, and 3x in active retailer partners in H1, 2022, compared to last year’s period. In the last few months, major brands like H&M, Bath & Body Works, Nike, Swarovski, and more have chosen Tabby as their payments partner.

Currently, the Klarna rival is active in Saudi Arabia, UAE, Egypt, and Kuwait.

Justin Burns, Managing Director of Atalaya Capital, says, “Atalaya is excited to partner with Tabby in its mission to expand access to credit and payments in markets where there are limited existing options.”

Max Penel, Co-Head of Global Fintech at PFG, says, “We continue to be impressed by Tabby’s ongoing rapid growth while materially improving its’ unit economics, and PFG is excited to continue to support Tabby through an upsize of our existing facility.”

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