Tabby, a leading MENA fintech specializing in Buy Now, Pay Later (BNPL) services, has secured a substantial $700 million debt facility from JP Morgan, a move strategically aligned with its Initial Public Offering (IPO) plans. This deal represents the largest asset-backed facility a fintech firm in the Middle East and North Africa (MENA) region has ever received. Tabby raised a $250 million Series D equity round a month ago.
Company Profile and Growth
The $250 million Series D equity was done at a valuation of $1.5 billion. Founded in 2019 with its headquarters in Saudi Arabia, Tabby (website) has rapidly expanded its user base to 10 million, offering BNPL services for both in-store and online purchases. Managing over $6 billion in annualized transaction volume, Tabby has established itself as a key player in the BNPL market.
Securitization is a major milestone, not only for Tabby but also the first of its kind for the region. It mirrors the rapid growth and evolution of the fintech landscape in our markets.
Hosam Arab, CEO and Co-Founder of Tabby
The BNPL sector in the MENA region is experiencing a significant influx of funding. Tabby‘s announcement coincides with a funding surge in the sector, evidenced by a recent $340 million Series C funding round secured by Tamara, a Saudi BNPL fintech, which also achieved a unicorn valuation.
Strategic Use of Funds
Tabby intends to utilize the new debt facility and the extended Series D funds to strengthen its balance sheet in response to the growing demand for BNPL services. The company aims to expand its financial service offerings, leveraging this influx of capital to broaden its market impact.
