UAE-based buy now, pay later (BNPL) firm Tabby has raised $58 million in a Series C round from Sequoia Capital India, STV, and PayPal Ventures, among others, at a valuation of $660 million, the company announced on Wednesday.
The fresh funding will be used to expand Tabby’s product line into next-gen consumer financial services and support the company’s growing operations, it said.
The capital raise pushes the company into the big league of MENA soonicorns. A study by Saudi Arabian VC fund STV projected that the MENA region would have over 45 startups valued at $1 billion by 2030.
Most unicorns in the MENA region are in the mobility tech space like Careem, KOI Ride, Udrive, Swvl, Yassir, ekar, Fenix, and Telegani.
The startup raised $50 million in a Series B round in July 2021, followed by an additional $54 million in an extended round led by Sequoia Capital India and STV in March 2022.
Tabby raised $23 million in its Series A round led by Arbor Ventures and Mubadala in 2020.
Founded in 2019 by Hosam Arab and Daniil Barkalov, Tabby has more than 3 million active loan borrowers in Saudi Arabia, Egypt, Kuwait, and the UAE. It has also partnered with multiple brands like Shein, Ikea, H&M, and Bath & Body Works.
Apart from BNPL loans, Tabby offers digital cards that lets users split their in-store purchases into four installments without interest.
“Over the next few years, it has the opportunity to offer several innovative products to its consumers to improve access while creating more affordability,” said GV Ravishankar, Managing Director at Sequoia Capital India.