Gulf fintech Tabby clinches $6.5 billion valuation after latest funding round

DUBAI: Saudi Arabia-headquartered fintech Tabby has raised $233 million from existing investors at a valuation of $6.5 billion, it said on Monday, as the buy-now-pay-later business expands into broader financial services in the kingdom and the United Arab Emirates.

Blue Pool Capital, a Hong Kong-based investment firm backed by Alibaba’s co-founder Joe Tsai, led the Series F equity round, with participation from HSG, Wellington Management and Arbor Ventures, the company said in a statement.

Tabby, which counts Abu Dhabi sovereign wealth fund Mubadala among its investors, was valued at $4.5 billion after its most recent share sale in October last year.

“The proceeds are primarily about giving us the capital to go deeper in our two core markets,” CEO and co-founder Hosam Arab told Reuters.

Founded in 2019, Tabby has over the past year secured licences in Saudi Arabia to offer larger and longer-term financing to consumers and working capital to businesses, while in the UAE, it was granted a licence to launch a cash product offering an alternative to traditional debit accounts.

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Tabby said part of the funding round, which involved the sale of both new and existing shares, would provide liquidity to employees.

It currently processes over $18 billion in annualized transaction volume across 25 million registered users and collaborates with 70,000 businesses, including Amazon and fast-fashion retailer Shein.

Tabby is currently focused on scaling its core business and on its newer financial products, Arab said when asked about plans for a potential public listing.

“We are profitable and well capitalised, so fortunately we do not need to force the timing,” he said.

“If and when we list, we’ll choose the market that makes the most sense for the company, our shareholders and our long-term growth.”