Buy-now-pay-later (BNPL) provider Tabby is preparing for an initial public offering (IPO) within the next 12 to 18 months, contingent on market conditions, Zawya reported, quoting CEO Hosam Arab. The company, founded in Dubai and now headquartered in Riyadh, has recently raised $160 million in a Series E funding round, doubling its valuation to $3.3 billion.
The funding round was led by existing investors Blue Pool Capital and Hassana Investment Company, with STV and Wellington Management participation. Tabby plans to use the proceeds to expand its financial services offerings, including digital spending accounts, payments, cards, and money management tools.
Tabby has appointed HSBC, JPMorgan, and Morgan Stanley to advise on the IPO, which is expected to take place on the Saudi Exchange. The company has also acquired Saudi-based digital wallet operator Tweeq to broaden its product portfolio.
With over 15 million users and partnerships with more than 40,000 brands, including Amazon and Shein, Tabby has seen its annualised transaction volume exceed $10 billion. The company aims to reach 20 million users by the end of the year.
Arab noted that while the IPO market for state-led and real estate entities has been active in the region, there have been relatively few IPOs among growth-oriented tech companies. He expressed concerns about market conditions, including oil prices and the potential impact on consumer spending and credit performance.
Tabby’s IPO plans come amid a broader wave of fintech activity in the Gulf region, as companies seek to capitalise on growing demand for digital financial services.
