4.August.2021 – Dubai-based “buy now pay later” platform Tabby announced that it raised USD 50 Million in a Series B funding round. After this round, the valuation of the company surges to USD 300 Million.
The funding round was led by Global Founder Capital and STV. The round was supported by CCVA and Delivery Hero. Some of the existing investors also participated in this funding round like MSA Capital, JIMCO, HOF, Outliers VC, Global Ventures, Raed Ventures, Mubadala Investment Capital, Arbor Ventures and VentureSouq.
Mark Venema, the senior vice president, Strategy at Delivery Hero, acknowledges that investing in tabby is strategic. He says the multinational sees “great potential in Tabby to drive the industry forward” and “is proud to be supporting the company on its growth journey.”
Ahmad Alshammari, partner at co-lead investor STV, in a statement, said, “As the global BNPL market is expected to grow at ~30% CAGR over the next five years, we estimate that MENA will grow at least twice as fast, further accelerated by a rapid switch to contactless payments, e-commerce growth, and access to credit. Our doubling-down shows our strong belief that Tabby is the market leader in MENA and that they will continue to drive BNPL’s growth across the region by enabling buyers and merchants alike.”
About Tabby –
Tabby was initiated by Hosam Arab in 2020 after he left Namshi in which he was a CEO. The idea behind starting this platform was that it can target a solution for the economic solution of MENA and the GCC Region.
The second thing was while working with Namshi he witnessed the dependency on cash as a mode of transaction, 80% of the transactions made by the company were on cash, which created a new challenge for the e-commerce platform to grow.
“With buy now, pay later, our view and hypothesis were that, in addition to the well-known benefits of buy now, pay later, Tabby also provide an alternative for consumers to pay online digitally. And if we’re able to do that, that becomes a very interesting solution for the retailers of this market.” – Arab said.
Since its inception in June 2020, Tabby has seen a growth of 20x in transaction volume. It claims to have more than 400,000 active shoppers and nearly 3,000 instalments are recorded daily. It has over 2,000 global brands and small businesses like IKEA, Adidas, Marks and Spencers and SHEIN.
“We’re seeing this level of competition globally. I don’t think that our market is any different. I think the market is big enough to handle a few players. How many players is really the question, and will that lead into further consolidation down the line potentially?” Arab said.
“I think what we’ve seen as well, even with Square’s acquisition of Afterpay, is that there needs to be a broader differentiation from the just plain vanilla BNPL. I think, if you continue to play in that very limited space of BNPL, the opportunities are going to be fairly challenging,”he added.
“There is a very long journey ahead of us and Tabby, where we believe we’re headed and what we want to build around this business,” “And so the short answer is no, we’re not looking for a quick exit; otherwise, we would have probably done it by now. The opportunity here for us is significantly bigger,” he stated further.
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