Saudi BNPL Tabby raises $160M Series E at a $3.3B valuation, becoming MENA’s most valuable fintech

💸 Saudi-based BNPL Tabby has raised $160 million in a Series E round at a $3.3 billion valuation, becoming MENA’s most valuable fintech company.

• It is now the second most valuable internet company in the region, trailing only Talabat. Notably, Tabby reached this milestone in just five years—its seed round was in November 2019.

💰 Investor lowdown: The round was led by existing investors Blue Pool Capital and Hassana Investment Company, with additional participation from STV and Wellington Management.

• This follows a $200 million Series D round in October 2023. The 18-month gap between rounds is the longest in Tabby’s funding history – all previous equity rounds were raised within a year of each other.

• Since the last funding round in October 2023, the financial services app has almost doubled its annualised transaction volumes to over $10 billion while growing profitability. 

⚙️ Breaking it down

Founded in 2019 by Hosam Arab and Daniil Barkalov, Tabby recently acquired Tweeq, a Saudi-based digital wallet, expanding its product portfolio. It has introduced Tabby Card for flexible payments beyond checkout and Tabby Plus, a subscription program. 

Additionally, it has evolved its core buy now, pay later offering with longer-term payment plans, Tabby Shop to help users find the best deals, and Tabby Care, a buyer protection program.

🔮 Flashforward

The newly raised funds will accelerate Tabby’s expansion into financial services, including digital spending accounts, payments, cards, and money management tools. 

This funding round also strengthens Tabby’s position as it prepares for an IPO. The company has reportedly hired HSBC, JP Morgan, and Morgan Stanley to lead the process, according to a source familiar with the matter.