We are co-leading a $50m Series B round in tabby, the leading Buy Now Pay Later provider in MENA. Based in the UAE and KSA, tabby enables more than 2,000 retailers to offer deferred payments, monthly installment plans and cashback to both online and in-store customers, at zero cost to the buyer.
At the end of last year, we announced our participation in tabby’s Series A round. At the time, we were strong believers in the potential of e-commerce and credit digitization in MENA as well as the ability of Hosam and Daniil to enable buyers and merchants across the region. Since our initial investment, the company has been able to unlock spectacular growth, with monthly GMV increasing more than 20x, active customers totalling 400,000 mainly across KSA and the UAE, and the roll out of a differentiated cashback program.
Beyond the demonstrable growth in customers, the company has also seen incredible adoption of its offering by merchants who see in tabby the perfect platform to increase their AOV (+33%), purchase frequency (+40%) and checkout conversion (+18%): customers can now use tabby’s services across more than 2,000 integrated merchants, including global brands such as Adidas, IKEA, SHEIN, VogaCloset as well as blue-chip regional retail groups such as Chalhoub Group, Al Futtaim Group, Landmark Group, and Apparel Group.
tabby’s impressive market adoption demonstrates the BNPL platform’s resonating value proposition in the region, further validating our initial thesis and conviction. We are proud to announce that we are doubling down on our position in tabby by co-leading a Series B round with GFC, and with the participation of new investors notably Delivery Hero, to propel the company’s growth across the wider GCC and enable access to credit for millions across MENA.
As the global BNPL market is expected to grow at ~30% CAGR over the next five years, we estimate that MENA will grow at least twice as fast, further accelerated by a rapid switch to contactless payments, e-commerce growth, and access to credit. Our doubling-down shows our strong belief that tabby is the market leader in MENA and that they will continue to drive BNPL’s growth across the region by enabling buyers and merchants alike.
The round has been joined by existing investors namely Arbor Ventures, Mubadala Capital, Raed Ventures, Global Ventures, MSA Capital, VentureSouq, Outliers VC, Jameel Investment Management Company (JIMCO) and HOF Capital. tabby also secured a $50m venture debt facility, one of the biggest of its kind in the region, from PFG last month to sustain their growth momentum, bringing the total capital raised to $100m.
You can download the tabby app here.