Dubai: The Gulf’s ‘Buy Now Pay Later’ fintech Tabby has secured $150 million in debt finance from Atalaya Capital Management and existing investor Partners for Growth (PFG). This is the largest credit facility secured by a fintech in the GCC to date and follows Tabby’s Series B extension earlier this year. The portal, which offers consumers financing for small-to-mid ticket purchases, has raised to date $275 million.
In a statement, Tabby has grown 10x in revenue, 8x in ‘active’ customers and 3x in active retailer partners in the first six months of 2022. “Tabby continues to operate with superior economics driven by controlled risk in a market where access to credit is scarce and consumers cannot easily overextend themselves,” it added.
In May, there was the launch of Tabby Card, which taps into ’90 per cent of the retail opportunity that happens offline’.
Why BNPL matters?
The market dynamics in the Gulf and Middle East is such that BNPL transactions are ‘more relevant compared to developed markets where players continue to face challenges’. In Saudi Arabia, less than 20 per cent of the population have a credit card in comparison to over 70 per cent of the population in the US.
We continue to be impressed by Tabby’s on-going rapid growth whilst materially improving its unit economics and PFG is excited to continue to support Tabby through an upsize of our existing facility.
Headquartered in New York, the debt financing facility is Atalaya Capital Management’s first deal in the MENA region. In addition, San Francisco based Partners for Growth upsized their initial $50 million commitment under the new facility.
“As we near profitability, we’re in the fortunate position of not having to raise equity under the current market conditions and as such are thrilled to partner with the like-minded people at PFG and Atalaya.”
- Hosam Arab, CEO and co-founder of Tabby
