Consumer demand for credit options vary across regions, and for fintechs, understanding these differences is key to survival.In developed countries where credit cards are common, consumers can buy now for flexible installment options, after I will pay aggressively.
However, in emerging markets like the Middle East where credit card penetration is low but high payouts, BNPL has even more convincing use cases. The model is strong enough that Tabby, one of the region’s pioneers, has secured $160 million in the Series E round at a $3.3 billion valuation, and has become the most valuable fintech in MENA. It has gained traction.
Growth Equity Investor Blue Pool Capital and Investment Management Firm Hassana Investment Company is a joint leader in fundraising. Saudi investors STV and Wellington executives also participated.
The round comes within 18 months when Tabby raised $200 million in the Series D round, valued at $1.5 billion. Since then, Tabby — which says it is profitable — has doubled its value and annualized transaction volume, which now exceeds $10 billion, according to the company.
“When we doubled our volume, our business profitability increased significantly,” Tabby co-founder and CEO Hosam Arab tells TechCrunch. He attributes this growth to the launch of new products, which have driven higher usage frequency. “Customers were relying on us just for e-commerce or (on sale) spending. Now, especially in the Arab Emirates In the federal views Tabby as a tool to manage all your spending, whether you buy coffee or ride an Uber,” he adds.
Move to a wider range of financial services
Supporting over 40,000 brands and merchants including Amazon, Adidas, Ikea, Samsung and Noon, Riyadh-Headquarted Fintech has expanded its product line to 15 million customers in Saudi Arabia, the UAE and UAE. It says it will help increase. Kuwait has increased by 50% since October 2023.
Tabby doesn’t stop at credits. Last year, it acquired Tweeq, a Saudi Arabia-based digital wallet provider. This expanded services tailored to the country’s push for cashless economy as part of its plans to expand to a wider range of financial services, including digital accounts, payments and money management tools.
Furthermore, on the roadmap, Tabby focuses on remittances, an area where there is already a strong position. With Saudi Arabia and the United Arab Emirates one of the world’s largest remittance markets, Tabby’s customer base (manufactured in large quantities of foreigners) offers natural opportunities.
Although Arabs refuse to share certain details, Tabby can first target the UAE and Indian corridors, one of the busiest transfer routes in the world. He notes that flexibility is important in providing Tabby’s money transfer services. Unlike traditional remittance providers, FinTech plans to allow users to split their remittances over time. This is an option offered by a small number of competitors.
Brewing competition and IPO planning
Tabby competes regionally with Coatue-backed Tamara in the BNPL space.Remittances bring new global players like UK-based Neobank’s Revolut, which announced plans to enter the UAE’s $44 billion market last September Faces competition.
However, Arab has accumulated Tabby as one of the region’s largest financial services platforms, with a large customer base and large merchant network, as one of the region’s largest financial services platforms, and the scale, We believe that local market expertise, trusted brands and deep customer relationships are accumulated.
On the IPO front, this series E-round might be Tabby’s last private pay raise before it’s released in the Saudi Arabian exchange. That was to be the case during Series D, but market conditions may have delayed those plans.
“We are opportunistic with the funding round,” says the Arab. “This was a good discussion with the right partner at the right time, so we decided to raise it right now. That said, our IPO plans have not changed. We’ve got a lot of effort into it. I’m taking it seriously and rarely raise another private round unless the market changes dramatically.”
Investor demand for MENA’s Tech IPO is growing. Talabat’s massive listing in Dubai last year showed the region’s appetite for high-growth startups. Meanwhile, Klarna’s expected IPO in April could serve as a bellwether for BNPL companies, signaling what’s ahead for the sector. (Amazon has already released Indian player Axio We have announced plans to buy it.)
But for now, Tabby, which has raised over $1 billion in equity and debt, is focusing on expanding its financial ecosystem. If time is correct, it aims to become the next major technology list for your region. Fintech, which moved its headquarters from Dubai to Riyadh for this purpose, has hired three banks to work on the transaction for this purpose.