The investment was led by Blue Pool Capital and Hassana Investment Company, with additional backing from STV and Wellington Management.

Since its last funding round in October 2023, Tabby has nearly doubled its annual transaction volume to over $10 billion while maintaining profitability. With more than 15 million users and a merchant network exceeding 40,000, Tabby continues to expand its reach across Saudi Arabia, the UAE, and Kuwait.

As part of its expansion, the fintech recently acquired Saudi-based digital wallet Tweeq, further strengthening its financial services portfolio. It has also introduced new products, including the Tabby Card for flexible payments, Tabby Plus as a subscription-based rewards programme, and longer-term instalment plans to enhance its core buy now, pay later (BNPL) offering.

The newly secured funds will enhance Tabby’s work in digital payments, cards, and money management tools, aligning with Saudi Arabia’s Vision 2030 goal of advancing a cashless economy. The company is also preparing for an initial public offering (IPO) on the Saudi Exchange, with this Series E round likely to be its final private fundraising before going public.

Hosam Arab, Tabby’s CEO and co-founder, stated that the investment will help the company accelerate its rollout of products that make managing money simpler and more rewarding for our customers. 

“We’re focused on creating tangible impact—helping people take control of their finances with tools that are accessible, effortless, and built for their everyday lives.”

Christopher Wu, chief investment officer at Blue Pool Capital, commended Tabby’s rapid growth, saying, “Tabby’s ability to innovate and deliver exceptional products is truly impressive. Their strong revenue growth and operational efficiency set them apart from other fintech companies globally. We are incredibly excited to support the team on their mission.”

The demand for BNPL services has grown steadily in the MENA region, where credit card penetration remains low despite high consumer spending power. Tabby has grown fast in this space, competing with rivals like Tamara while also expanding into broader financial services. 

The company is also exploring remittance solutions, particularly in high-volume corridors like UAE to India, offering flexible payment options that traditional providers lack.

With increasing investor interest in tech IPOs within MENA, Tabby’s upcoming listing is expected to be a landmark event for the region’s fintech sector. The company has already raised over $1 billion in equity and debt, bolstering its scale up speed in digital payments and financial services.

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.

The investment will be used to expand Tabby’s product line into next-gen consumer financial services and support the company’s growing operations. This round makes Tabby one of the most valuable startups in MENA and the first in the GCC to receive funding from PayPal Ventures.

Investors in the round were Sequoia Capital India, STV, PayPal Ventures, Mubadala Investment Capital, Arbor Ventures and Endeavor Catalyst.

Hosam Arab, CEO and Co-Founder of Tabby, said: “With rising interest rates and growing inflation, it has never been more important for people to have access to payment flexibility to stay in control of their finances. Despite downward pressure on fintech valuations, our business continues to sustainably scale as we lead the generational shift towards fair and transparent financial products in MENA.”

“We’re excited to grow with an incredible set of investors who believe in the opportunity to create a healthier relationship with money for consumers in a region that’s ripe for change,” he added.

The company works with over 10,000 brands including 9 out of the 10 largest retail groups in MENA, and more recently launched with noon, the region’s largest eCommerce marketplace. Last year, Tabby crossed 3 million active shoppers, expanded its operations to Egypt and grew 5x in revenue over the previous year.

GV Ravishankar, MD, Sequoia India, said: “We are excited to see Tabby grow into a leading consumer-focused fintech company for the region. Over the next few years, it has the opportunity to offer several innovative products to its consumers to improve access while creating more affordability. The team has done this with continued focus on good credit quality and strong economics.”

Ihsan Jawad, Partner at STV said: “We are pleased to be doubling down on our partnership with Hosam, Daniil and the team on their growth journey across the region. Backing tabby means tapping into MENA’s $95bn BNPL market opportunity that is just getting started, and being part of the future of financial services across the region.”

Amongst its other milestones, the fintech company has issued over 150,000 Tabby Cards only six months after launching its cards program with in-store sales now making up over 10% of the company’s volumes.