Target Information

Tabby, a leading player in the Buy Now, Pay Later (BNPL) sector, has been gaining traction since its inception. Founded in 2020, the company has rapidly scaled its operations, currently serving over 3 million active customers primarily in Saudi Arabia and the UAE. Customers can utilize Tabby’s services to pay for their purchases in installments at more than 10,000 merchants, which include both global brands like SHEIN, H&M, Adidas, and IKEA, as well as regional favorites such as Noon and VogaCloset.

In just a year since the last investment, Tabby has demonstrated remarkable growth, with revenue increasing fivefold while solidifying its position as the market leader in the Middle East. The company has expanded its offerings beyond its initial split-in-4 service to include a comprehensive merchant directory, a cashback program, and the newly launched Tabby card. Additionally, Tabby has entered the Kuwaiti market, further broadening its geographical reach.

Industry Overview in MENA

The Middle East and North Africa (MENA) region is experiencing rapid development in the BNPL landscape, driven by increased adoption of contactless payment methods and significant growth in e-commerce. The region, with a potential market size of $95 billion, remains largely untapped, presenting immense opportunities for BNPL solutions, especially given the limited access to traditional credit options for many consumers.

As e-commerce continues to expand, even amid challenges such as regulatory changes and varying consumer preferences, companies like Tabby are well-positioned to cater to a burgeoning demand for flexible payment solutions. With a young and tech-savvy population, the inclination towards innovative financial products is substantial, indicating a positive trend for BNPL services.

Furthermore, the increase in smartphone penetration and digital skills among consumers contributes to the growing acceptance of BNPL services. As buyers become more accustomed to online shopping and digital transactions, the demand for financing solutions that offer convenience, accessibility, and affordability continues to rise.

This environment not only supports existing players like Tabby but also invites new entrants to explore the BNPL market in MENA. As competitive dynamics evolve, partnerships and strategic collaborations will be crucial for capturing market share in this fast-growing sector.

Rationale Behind the Deal

The decision to co-lead a Series C funding round in Tabby with notable partners such as Sequoia Capital stems from a strong belief in the company’s potential to redefine payment experiences in the region. Investors have witnessed Tabby’s significant momentum and its ability to innovate continuously, making it a prime candidate for investment.

By supporting Tabby’s initiatives to enhance consumer payment experiences and expand its product suite, investors aim to tap into the vast market opportunities present in the BNPL segment. The strategic investment not only reinforces the backing of a strong and established team but also positions investors favorably for future growth in this burgeoning market.

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