The demand for consumer credit varies widely across different regions, shaping how fintech companies position their services. In developed markets where credit cards are widely available, buy now pay later solutions have gained traction due to their flexible installment options. However, in emerging markets like the Middle East, where credit card penetration is relatively low but spending power is high, BNPL has become an essential financial tool rather than just a convenience.
This rising demand has propelled Tabby, one of the Middle East’s leading fintech firms, to new heights. The company has secured a 160 million Series E funding round, doubling its valuation to 3.3 billion and making it the most valuable fintech in the MENA region. The funding round was co-led by Blue Pool Capital and Hassana Investment Company, with participation from Saudi-based STV and Wellington Management.
This milestone comes less than 18 months after Tabby raised 200 million in a Series D round, when it was valued at 1.5 billion. Since then, the company has more than doubled its valuation and annualized transaction volume, which now exceeds 10 billion.
According to Tabby’s co-founder and CEO Hosam Arab, this exponential growth is largely driven by new product offerings that have increased customer engagement and transaction frequency. Initially, Tabby was primarily used for e-commerce and point-of-sale transactions, but it has now become an integral tool for managing everyday spending, from small purchases like coffee to ride-sharing services.
Tabby has been expanding its services beyond BNPL, moving into broader financial services that cater to an increasingly digital-first consumer base. The company introduced Tabby Card, allowing users to spend flexibly, along with Tabby Plus, a subscription-based rewards program. Tabby Shop, another key offering, enables customers to access extended payment plans and better deals.
The company’s user base has been growing rapidly, now serving over 15 million customers across Saudi Arabia, the UAE, and Kuwait. It also supports over 40,000 brands and merchants, including major global retailers like Amazon, Adidas, IKEA, Samsung, and Noon.
Beyond consumer credit, Tabby is laying the groundwork for a much broader financial ecosystem. In 2023, it acquired Saudi-based digital wallet provider Tweeq, signaling its ambition to expand into digital accounts, payments, and money management tools. These services align with the Saudi government’s push toward a cashless economy and position Tabby as a leading player in the region’s financial transformation.
One of the company’s most ambitious targets is the remittance market. With Saudi Arabia and the UAE ranking among the world’s largest remittance-sending countries, Tabby sees a massive opportunity to provide flexible money transfer solutions for its largely expatriate customer base. While details remain scarce, early speculation suggests that Tabby may initially target the UAE-India remittance corridor, one of the busiest in the world. Unlike traditional money transfer providers, Tabby is considering offering an installment-based remittance option, an innovation that few competitors currently provide.
Tabby’s expansion into remittances will introduce a new set of competitors, including global fintech players like Revolut, which announced plans last year to enter the UAE’s 44 billion remittance market. However, Tabby’s local market expertise, strong customer trust, and vast merchant network could give it a competitive advantage in the region.
On the funding front, this Series E round is widely believed to be Tabby’s final private raise before going public on the Saudi Exchange. While an IPO was also anticipated after its Series D round, market conditions may have delayed those plans.
CEO Hosam Arab remains optimistic about the company’s public listing plans, noting that the decision to raise funds was opportunistic rather than a necessity. He emphasized that unless market conditions shift drastically, Tabby is unlikely to seek additional private funding before its IPO.
Investor interest in MENA tech IPOs has been growing, as demonstrated by Talabat’s major listing in Dubai last year. Meanwhile, Klarna’s expected IPO in April is being closely watched, as it could set the tone for BNPL companies looking to go public. Additionally, Amazon’s recent acquisition of Indian BNPL firm Axio suggests that major players are eyeing the sector’s next phase of growth.
Tabby has now raised over 1 billion in equity and debt, and as it continues to expand its financial ecosystem, the company is well on its way to becoming one of the region’s most influential fintech brands. According to Bloomberg, Tabby has already hired three banks to oversee its IPO process, a move that underscores the company’s confidence in its future market positioning.
As Tabby prepares for its public debut, its expansion beyond BNPL into remittances, payments, and broader financial services could redefine how digital finance operates in the Middle East. With a rapidly growing customer base, a strong merchant network, and backing from major investors, Tabby is positioning itself as the next major tech listing in the region.
