Saudi consumer finance portal Tabby secures asset-backed $700m from JP Morgan
This is one MENA's biggest asset-backed financing for a fintech
Dubai: The consumer financing portal Tabby has raised $700 million – through receivables securitization from the US bank JP Morgan.
This represents one of the biggest asset-backed financing facility raised by a fintech within the Middle East and North Africa. Such facilities are usually extended to bigger corporate entities with multiple assets on their books.
“Securitization is a major milestone, not only for Tabby but also the first of its kind for the region,” said Hosam Arab, CEO and co-founder of Tabby. “It mirrors the rapid growth and evolution of the fintech landscape in our markets.”
On why opt for a debt funding when selling its equity would have drawn instant investors, a Tabby spokeserson said: "Debt financing is a core component for most lending institutions and more efficient than raising equity, even more so for companies like Tabby that can cycle principals every few weeks."
About whether JP Morgan will have an eventual equity in it, the spokesperson said: "JP Morgan is not an equity investor and this deal does not have implications for equity share."
At the same time, Tabby extended its Series D financing round to close $250 million, with investments from Hassana Investment Company, US-based Soros Capital Management and KSA-based Saudi Venture Capital (SVC).
“The recent Series D funding round, coupled with the $700 million asset-backed securitization, will support Tabby in amplifying its reach and impact," said Ahmed Al Qahtani, Chief Investment Officer for Regional Markets at Hassana Investment Company.
"As a committed and long-term investor, we believe in Tabby's vision to empower consumers and merchants alike and reshape the future of financial services in Saudi Arabia and the wider MENA region."