UAE’s BNPL Platform Tabby Raise Over $350 Million in Debt Facility

Tabby, a Dubai-based buy now, pay later (BNPL) platform, has raised more than doubled its debt facility to $350 million.

The Mubadala-backed FinTech company secured the financing from global credit investors led by US-based Partners for Growth, Atalaya Capital Management and CoVenture, Tabby said in a statement on Wednesday.

Tabby’s platform went live in February 2020. Since then, it has signed agreements with more than 15,000 global brands and small businesses, including H&M, adidas, Ikea, Noon and Bloomingdale’s. The FinTech start-up is active in Saudi Arabia, UAE and Kuwait.

Tabby previously procured $150 million in debt financing from Atalaya Capital Management and PFG in August last year in one of the largest credit lines secured by a FinTech start-up in the GCC.

“The financing reflects the remarkable growth the company is experiencing with more than four million active customers,” the statement said.

Hosam Arab, chief executive and co-founder of Tabby, said that they were thrilled to partner with investors Atalaya, CoVenture and PFG to continue supporting Tabby’s growth and redefining what people can do with their money.

The additional financing will support Tabby’s core BNPL business and allow it to serve more customers, retailers and purchases, the company said.

In January, Tabby raised $58 million in a Series C round from investors including PayPal Ventures, Sequoia Capital India, and Saudi Arabia’s STV, which valued it at $660 million. With this, Tabby became one of the most valuable start-ups in the Middle East and North Africa (MENA) and the first in the GCC to receive funding from PayPal Ventures, the venture capital arm of PayPal. The company also raised $54 million from Sequoia Capital India and STV last March.

BNPL in UAE

The robust Internet infrastructure coupled with the surging e-commerce market and digital payment ecosystems has supported the growth of the BNPL industry in the UAE. With more consumers shopping online in 2022, compared to 2021, the trend has translated into a higher adoption of BNPL schemes across the Emirati region.

BNPL payments in the UAE are expected to grow by 22% on an annual basis to reach $2.53 billion in 2023, according to ResearchandMarkets.com.

The Emirates’ BNPL payment industry has recorded strong growth over the last four quarters, supported by increased ecommerce penetration.

“Medium to long term growth story of BNPL industry in the UAE remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 12.3% during 2023-2028. The BNPL Gross Merchandise Value in the country will increase from $2.07 billion in 2022 to reach $4.5 billion by 2028,” Researchand Markets.com said.

Over 37% of consumers have used the BNPL payment schemes in the UAE in 2022. This is much higher, as compared to the 24% who used the BNPL options a year before.