Tabby, a Dubai-based payments and shopping app, has raised $200 million in equity financing as a part of its Series D funding. This follows the $150 million in debt financing it received last year and $58 million Series C funding round raised earlier this year.
The round was led by Wellington Management, one of the world’s leading independent investment management firms. The equity financing drew additional participation from growth equity investor Bluepool Capital, in addition to existing investors STV, Mubadala Investment Capital, PayPal Ventures and Arbor Ventures.
This round values Tabby at over $1.5 billion, making it the region’s first fintech unicorn ahead of its planned IPO in Saudi Arabia. The fundraise will be used to continue shaping Tabby’s best-in-class finance and shopping products for consumers and retailers.
Klarna’s rival from Gulf
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. Last year, the company announced the launch of Tabby Card, a first-of-its-kind solution in MENA, tapping into 90% of the offline retail opportunity.
Tabby’s use as a payment method in physical stores, including Tabby Card continues to accelerate, now reaching over 20% of total volumes, states the company. To date, the fintech firm has issued over 150,000 Tabby Cards, with in-store sales making up over 10% of the company’s volumes.
Besides this, recently the company launched Tabby Shop, showcasing over 500,000 products from thousands of brands to help shoppers discover and track the best products and deals in one place. Currently, Tabby has 10 million users and works with over 30,000 brands including 10 of the largest retail groups in the region.
CEO and Co-Founder Hosam Arab said: “Tabby set out with a purpose to reshape financial services–one that’s fair and responsible–and with this investment we can advance our mission across Saudi Arabia and the UAE. We’re very happy to have Wellington Management lead this round given their deep expertise in financial services.”
STV Founder and CEO Abdulrahman Tarabzouni said: “Tabby created a new industry and is transforming the way people consume and pay across Mena. Hosam and team built an iconic enterprise that is a reference model in terms of both discipline and disruption; two things that are hard to crack in-tandem. We are excited to see Tabby become an integral part of Saudi’s fintech landscape, nurturing growth and empowering the broader economy.”