Dubai-based buy now, pay later (BNPL) provider tabby has raised $500 million in a new equity round, pushing its valuation to $300 million, the company announced. This latest funding round comes on the heels of a $50 million debt financing drive. In all, the company has raised more than $130 million in under two years.
The Series B funding round was led by Global Founders Capital and STV, with contributions from Delivery Hero and CCVA, as well as current investors Arbor Ventures, Mubadala Investment Capital, Raed Ventures, Global Ventures, MSA Capital, VentureSouq, Outliers VC, The Jameel Investment Management Company and HOF.
A provider in Saudi Arabia and the United Arab Emirates, tabby will use the funds to expand into new markets, as well as keep pace with growing demand, particularly in Saudi Arabia.
In addition to tabby, FinTech giants are also making a play for the BNPL market. As PYMNTS recently reported, digital payments company Square announced its intent to purchase Australian BNPL firm Afterpay in an all-stock deal valued at approximately $29 billion.
Apple, too, recently announced its plans to enter the increasingly crowded BNPL market. Apple Pay Later, as the effort is dubbed, would be similar to the Apple Card program, which lets cardholders purchase Apple products with zero percent financing if paid in full during a 24-month timeframe.
Like Apple, tabby offers interest-free payments for customers who shop online or at brick-and-mortar stores. The company works with more than 2,000 clients, including companies like Adidas and IKEA. The app has more than 400,000 active users with 3,000 daily downloads. Tabby recently debuted its own loyalty program, which offers a cash-back incentive to users who shop with the tabby app.
“This investment will enable us to deliver the most rewarding and relevant shopping experience for regional consumers and retailers,” said Hosam Arab, tabby’s CEO and co-founder.