Saudi fintech firm Tabby has raised $160 million in a Series E funding round, boosting its valuation to $3.3 billion as it prepares for an initial public offering (IPO) within the next 18 months. The round was led by existing investors Blue Pool Capital and Hassana Investment Company, with participation from STV and Wellington Management.
Founded in 2019, Tabby offers buy now, pay later (BNPL) services, allowing customers to defer payments for purchases. The company has partnered with over 40,000 brands, including Amazon and Shein, across markets such as Saudi Arabia and the United Arab Emirates.
The BNPL sector gained traction during the pandemic as online shopping surged. However, regulators in the UK and the US have cautioned consumers about potential risks associated with deferred payment services.
Tabby plans to use the new capital to expand its product offerings, including digital spending accounts, payment solutions, and money management tools. The company aims to reach 20 million users by the end of the year. CEO Hosam Arab stated, “It really is around just making this next leap for the business, from a pure buy-now-pay-later business to a lot more than just that.”
In preparation for its IPO, Tabby has engaged HSBC, JPMorgan, and Morgan Stanley to oversee the listing process, with Saudi Arabia being considered as a potential venue.
The Gulf region has experienced a surge in IPO activity, with 54 offerings raising $12.6 billion in 2024, marking a 17.6% increase in proceeds compared to the previous year.
Tabby’s rapid growth and strategic initiatives position it as a prominent player in the Middle East’s fintech landscape, reflecting the region’s expanding digital economy and investor interest in technology-driven financial services.
