Tabby has raised $233 million in equity funding at a $6.5 billion valuation as the financial technology company expands beyond buy now, pay later into a broader range of financial products across Saudi Arabia and the United Arab Emirates. The round was led by existing investor Blue Pool Capital, with participation from existing shareholders HSG, Wellington Management and Arbor Ventures.
Tabby has been profitable since 2023 and currently processes more than $18 billion in annualized transaction volume.
The company has approximately 25 million registered users and works with 70,000 business partners.
The new capital will support Tabby’s expansion into additional credit, payments and money management products in Saudi Arabia and the UAE.
The financing also includes a liquidity option for employees.
Tabby has conducted employee share tenders since 2023 and has facilitated more than $100 million in share sales, allowing current and former employees to realize some of the value of their holdings.
Tabby has spent the past year expanding its regulatory licenses and product portfolio.
In Saudi Arabia, the Saudi Central Bank granted the company consumer and SME finance licenses, allowing Tabby to provide larger and longer-term financing to consumers as well as working capital products for businesses.
Tabby also acquired Tweeq, a SAMA-licensed digital wallet, expanding its capabilities into accounts, cards and money transfers.
In the UAE, Tabby obtained a Stored Value Facilities license from the Central Bank of the UAE.
The license supports Tabby Cash, which the company positions as an alternative to a traditional debit account without account or card fees.
Tabby Cash customers can earn cashback from card spending and send money domestically and internationally.
The company’s technology is used by more than 70,000 global and regional brands, including Amazon, Apple, IKEA, Samsung, SHEIN, Jarir and noon.
The transaction remains subject to applicable regulatory approvals, including approval from the Saudi Central Bank.
KEY QUOTES:
“We began with a button at an online checkout to help people spread costs over time. Everything since, every product and every licence, has come back to the same idea: people deserve more from their money. This round means we can build further on that, without changing how we think about growth or discipline.”
Hosam Arab, CEO and Co-Founder of Tabby
“Tabby has demonstrated an impressive ability to innovate for their customers, evolving beyond payments to become the trusted platform for millions of people managing, spending and growing their money across the region. We are proud of our partnership with Tabby over the past three years, and we are excited to continue supporting the impressive growth of the company with this financing.”
Christopher Wu, Chief Investment Officer at Blue Pool Capital
