Tabby Emerges as Gulf’s First Fintech Unicorn with $1.5 Billion Valuation

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Tabby, a platform offering Buy Now, Pay Later (BNPL) services in the Middle East, has secured $200 million in its Series D funding round, propelling its valuation to $1.5 billion. This achievement positions Tabby as the first fintech unicorn in the Gulf region. The platform provides shopping and financial services, revolutionizing how customers shop and make payments.

Key Points:

  1. Strong Growth and Profitability:
    • Tabby’s funding round comes on the heels of impressive growth, with a threefold increase in revenues. Notably, the platform has achieved profitability, which is a notable accomplishment in the global BNPL landscape.
  2. Market Presence and Partnerships:
    • Tabby collaborates with over 30,000 brands, including major names like Adidas, Amazon, H&M, and SHEIN, as well as 10 of the largest retail groups in the MENA region. It caters to over 10 million users across Saudi Arabia, UAE, and Kuwait.
  3. Unique Market Dynamics:
    • Unlike the US and Europe, where BNPL providers often operate at a loss, Tabby claims profitability in the GCC region. This is attributed to specific market dynamics, including relatively low credit card penetration and restricted access to credit alternatives.
  4. Two Customer Segments:
    • Tabby serves two distinct customer segments: those in regions with low credit card penetration and those who find the platform’s tokenized payment method convenient. For many, Tabby represents their first and only source of credit.
  5. Strategic Market Selection:
    • Tabby carefully evaluates market potential based on factors like e-commerce penetration, credit card usage, and consumer purchasing power before entering a market. This strategic approach influences its market presence and expansion decisions.
  6. Saudi Arabia: Core Market:
    • Saudi Arabia accounts for 80% of Tabby’s customer base and plays a pivotal role in its annualized transaction volume, surpassing $6 billion. The company is preparing for an IPO on the Saudi stock exchange.
  7. UAE Growth and Expansion:
    • The UAE represents Tabby’s second-largest market. The introduction of Tabby Cards and partnerships with over 4,000 stores have significantly contributed to its growth.
  8. Future Plans:
    • Tabby intends to expand its product offerings beyond BNPL, introducing various credit options and extending its reach. The platform aims to enhance customers’ financial well-being by providing a broader range of financial services.

Conclusion: Tabby’s achievement as the Gulf’s first fintech unicorn underscores its significant impact on the regional financial landscape. The platform’s strategic approach to market selection, coupled with its unique value proposition, has led to remarkable growth and profitability. As Tabby continues to expand its offerings and presence, it is poised to play a central role in shaping the future of fintech in the Middle East.


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