Gulf fintech Tabby clinches $6.5 billion valuation after latest funding round

DUBAI: FinTech startup Tabby, based in Saudi Arabia, has successfully raised $233 million in its latest funding round, bringing its valuation to an impressive $6.5 billion, according to the company's statement on Monday. The funding round was led by Blue Pool Capital, a Hong Kong-based investment firm with backing from Alibaba co-founder Joe Tsai, and included participation from HSG, Wellington Management, and Arbor Ventures.

Tabby, which has Mubadala, a prominent Abu Dhabi sovereign wealth fund, among its investors, had previously raised capital to a valuation of $4.5 billion following a share sale in October of the previous year.

CEO and co-founder Hosam Arab informed Reuters that the newly raised funds will primarily be utilized to expand Tabby's operations within its two core markets. In Saudi Arabia, Tabby has obtained licenses to offer larger and longer-term financing to consumers and working capital to businesses. Meanwhile, in the UAE, the company was granted a license to introduce a cash product serving as an alternative to conventional debit accounts.

The funding round involved the sale of both new and existing shares, providing liquidity to Tabby's employees. Currently, Tabby processes over $18 billion in annualized transaction volume across 25 million registered users and collaborates with 70,000 businesses, including major players such as Amazon and fast-fashion retailer Shein.

Arab emphasized that while the company is currently focused on scaling its core business and newer financial products, it remains profitable and well-capitalized, which alleviates the need to expedite a potential public listing. He added that the timing for a listing will be determined based on what is best for the company, its shareholders, and its long-term growth prospects.