Tabby’s $3.3 Billion Valuation Positions Company For IPO As It Completes $160 Million Funding Round
Mubadala-backed Tabby, a leading fintech company, has seen its valuation soar to $3.3 billion after concluding a $160 million Series E investment round. This significant financial injection not only underscores the company's robust growth trajectory but also establishes it as the preeminent fintech entity across the Middle East and North Africa.
The investment round attracted noteworthy contributors, including Blue Pool Capital based in Hong Kong, and Hassana Investment Co., the investment arm of the General Organization for Social Insurance in Saudi Arabia. The round also saw participation from seasoned investors such as STV and Wellington Management. This diversity in funding sources highlights the wide-ranging confidence in Tabby's business model and its future prospects.
In an impressive leap of growth, Tabby has managed to double its annualized transaction volumes, surpassing $10 billion since its Series D funding round in 2023. During this period, the company achieved the coveted unicorn status, denoting a startup valued at over $1 billion. This milestone was significant, underscoring Tabby's rapid ascension and burgeoning influence within the fintech domain. Tabby is currently operational within Saudi Arabia, the UAE, and Kuwait.
Saudi Arabia, through initiatives like the National Unicorn Program, aims to bolster the growth of high-potential startups like Tabby. This programme, supported by the Ministry of Communication and Information Technology, the Mohammed bin Salman Foundation, and the National Technology Development Program, focuses on nurturing startups with the potential to significantly contribute to job creation and GDP growth.
Hosam Arab, CEO and co-founder of Tabby, expressed enthusiasm about the investment's potential to drive innovation. "This investment allows us to accelerate our rollout of products that make managing money simpler and more rewarding for our customers. We're focused on creating tangible impact — helping people take control of their finances with tools that are accessible, effortless and built for their everyday lives," Arab stated.
Expanding its offerings beyond the core buy now, pay later (BNPL) service, Tabby has ventured into new territories with strategic acquisitions and product launches. By acquiring digital wallet Tweeq and launching both the Tabby Card and Tabby Plus, a subscription program, Tabby is diversifying its services to cater to a broader range of financial needs. These initiatives signify the company's ambition to redefine the financial services landscape, offering more flexible and comprehensive solutions to its users.
With over 15 million registered users and partnerships with more than 40,000 sellers, including heavyweights like Amazon and Shein, Tabby's platform has emerged as a cornerstone of the fintech ecosystem in the region. The company's success story, originating in the UAE before relocating to Saudi Arabia, reflects its strategic alignment with the Kingdom's economic objectives and its agile response to the evolving digital finance landscape.
Looking forward, Tabby's latest funding will fuel its expansion into new financial products, including digital spending accounts and money management tools, preparing the ground for its anticipated initial public offering in the Saudi market. This strategy not only broadens Tabby's product portfolio but also strengthens its market position ahead of its IPO, marking a pivotal stage in the company's journey.
Tabby's recent fundraising success marks a significant milestone in its growth narrative, reinforcing its leadership in the fintech sector while aligning with Saudi Arabia's broader economic and technological ambitions. With a diversified product suite, a strong user base, and strategic plans for an IPO, Tabby is well-positioned to continue its trajectory of innovation and expansion, contributing to the financial landscape of the Middle East and beyond.
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