2023 has been another successful year for Buy Now Pay Later platforms in Saudi Arabia and UAE. In the latest, Tabby took to a hybrid format to raise new funds. Image Credit: Supplied

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."

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Image Credit: Supplied

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."