Egypt’s Tabby raises $58m for product expansion

Tabby, a Buy Now Pay Later (BNPL) company based in the Middle East and North Africa region, recently sealed its series C round on $58m, which brings its valuation to $660m.

This milestone attained by Tabby has made it one of the most valuable startups in MENA and the first Gulf Cooperation Council (GCC) to be awarded funding from Paypal Ventures.

Tabby is known for its BNPL services, which are rendered to its customers in developing countries where credit penetration is low or having a credit history is asking for too much. The platform is particularly popular among users because it allows consumers to pay for products over four interest-free payments.

Participants in this investment round included Sequoia Capital India, STV, PayPal Ventures, Mubadala Investment Capital, Arbor Ventures and Endeavor Catalyst.

Speaking on the Series C, Tabby CEO and co-founder Hosam Arab 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.

Tabby is currently in partnership with over 10,000 business brands, whereby 9,000 out of the 10,000 brands are from the largest yet reputable retail groups in MENA.

Also, they expressed their utmost appreciation by saying,

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.

Funds invested by other business brands are to promote BNPL with next-generation financial services.

Read Also; South African fintech startup Yoco raises $83 million Series C funding round

Tabby’s achievements in 2022

In 2022, Tabby thrived more than it ever had; it passed a lot of milestones, one of these being the rapid increase of its shoppers to three million active customers. In addition, the BNPL service also expanded its operations to Egypt, which helped it grow 5 folds in revenue than it recorded in 2021.

Moreover, it issued over 150,000 ‘Tabby cards’ six months after launching its cards program. This shows the rate at which the business has gained recognition. .

Although 2022 was a busy year for Tabby’s funding, it secured its $150m credit facility from Atalaya Capital Management and Partners for Growth. This happened months after it raised $50m in debt financing from Partners for Growth. Tabby is not just a successful business brand, but also, but its growth is spectacular and noticeable.