Tabby Raises $230 Million to Expand BNPL Offering

Saudi Arabia-based buy now, pay later FinTech company Tabby has successfully raised $230 million in new funding, according to a report published on September 14. The financing round has increased the company's valuation to $6.5 billion, which will be utilized for expanding Tabby's BNPL offering in the Gulf region. Tabby's co-founder and CEO, Hosam Arab, announced the news on LinkedIn, mentioning that the company now holds consumer and SME finance licences in Saudi Arabia, alongside a stored value facilities licence in the UAE.

These licences enable Tabby to expand its operations beyond its initial scope, and the newly acquired capital allows the company to pursue growth opportunities in its core markets of Saudi Arabia and the United Arab Emirates (UAE).

In an interview with Reuters, Arab stated that the funding will primarily be used to strengthen Tabby's presence in its two primary markets. Currently, Tabby processes over $18 billion in annualized transaction volume, serving 25 million registered users. The FinTech company collaborates with more than 70,000 businesses, including major e-commerce platforms such as Amazon and Shein.

A separate report published on Sept. 15 by PYMNTS explored the utilization of installment payments for travel. The research found that credit card installments accounted for 26% of the travel expenses covered by consumers, while 8% opted for BNPL. Younger and higher-income consumers demonstrated a stronger inclination towards flexible payment methods.

According to PYMNTS, 45% of Generation Z and 42% of millennials turned to card installments in their purchases, while consumers earning more than $100,000 annually were 57% more likely to use card installments compared to those earning under $50,000. This information suggests that installment payments can cater to the financial needs and preferences of different consumer groups.