The buy now pay later concept is quite simple - shoppers get to pay in installments or at a later date, but without having to pay an interest. Image Credit: Gulf News Archive

Dubai: The 'buy now, pay later' services provider tabby has raised $23 million from a broad range of investors, including Mubadala Capital. The funding will be used for further expansion requirements, as the company expands its user base and alliances with retailers.

Founded in 2019, tabby partners with retailers to offer customers to defer paying for their purchases for up to 30 days - or to pay in four equal monthly installments at zero cost to the consumer. Customers are able to use its service across more than 500 integrated merchants, including leading global brands like IKEA, Toys R Us and Ace Hardware.

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Melissa Guzy, Managing Partner at Arbor Ventures, which is one of the investors in the latest roud, said: “We are very excited to have backed tabby, the leader in buy now pay later in MENA, which is at a tipping point in digital payments. tabby’s network is expanding rapidly, and the company continues to innovate to offer best in market solutions for merchants and new frictionless payments for consumers.”

Buy-now-pay-later solutions are booming globally thanks to accelerated payments digitization and e-commerce penetration, and the Middle East is no exception

- Ibrahim Ajami, Head of Ventures at Mubadala Capital