Focused on reshaping the way people shop and manage finances, Tabby, a shopping and financial services app, has reached unicorn status, valued at $1.5 billion after raising $200 million in its Series D funding round.Â
This cements Tabby’s position as the first fintech startup unicorn in the Gulf region, underlining its growth and market importance.
The rise of Tabby to prominence is attributed to its innovative approach, allowing users to stay in control of their spending and make the most out of their money.
With over 10 million users choosing Tabby to manage their finances, the app enables customers to split their purchases into four interest-free payments, both online and in-store, offering a Shariah-compliant solution to their financial needs.
One of Tabby’s key strengths lies in its partnerships with more than 30,000 global brands and small businesses, including industry giants like SHEIN, Amazon, Adidas, IKEA, H&M, Samsung, and noon.
Through its technology, these businesses accelerate their growth and gain loyal customers by offering flexible payments, both online and in physical stores.
The strategic expansion of Tabby in the Gulf region, being active in Saudi Arabia, UAE, and Kuwait, where the demand for convenient and accessible credit options is high due to limited credit card penetration, contributed to the company’s growth.
Unlike its counterparts in the United States and Europe, where BNPL providers often operate at a loss, Tabby has managed to achieve profitability in the GCC region. The company’s profitability is further reinforced by stringent regulations and a market where consumers are not overstretched when it comes to credit, making BNPL services a vital source of credit for many.
Founder and CEO Hosam Arab highlighted the significance of this achievement, emphasizing the company’s substantial growth and profitability over the last year. He explained that Tabby’s profitability stems from its unique market position, catering to two distinct customer segments: those in regions with low credit card penetration and customers who find
Tabby’s tokenized payment method convenient. This market-focused approach has allowed Tabby to maintain solid payment performance and address concerns related to impulsive spending and unsustainable debt caused by BNPL services.
Tabby’s latest funding round was led by investors including Sequoia Capital India, STV, PayPal Ventures, Mubadala Investment Capital, Arbor Ventures, Endeavor Catalyst, Wellington Management, and Bluepool Capital. This influx of capital positions Tabby for future growth and potentially marks the last round of funding before an initial public offering (IPO).
Tabby seeks to enhance the way people shop, earn, and save. Its newfound unicorn status highlights the app’s role in reshaping the future of fintech in the Gulf region.
With a goal to provide accessible and transparent financial solutions, Tabby stands at the forefront of facilitating the digital finance space, empowering millions to achieve financial freedom.
