Tabby nabs $54Mn extension round backed by Sequoia Capital and STV

  • The BNPL platform reached a valuation of $300 million after securing $50 million in initial Series B round
  • Tabby has raised a total of $104 million in both phases of the Series B round

Buy now, pay later (BNPL) platform Tabby – headquartered in Dubai – has completed a Series B extension round raising $54 million.

This comes after the platform secured $50 million last year as a part of the initial Series B round, taking the company’s valuation to $300 million.

While the round was co-led by Sequoia Capital India and STV, some of the existing investors including Mubadala Investment Capital, Global Founders Capital (GFC), and Abor Ventures also participated in the fundraise.

Tabby allows users to shop, pay later, and earn cash from more than 3,000 global brands right from IKEA, Adidas, Bloomingdale’s, and many others. It has altogether nabbed $104 million in total Series B funding.

According to Tabby, the platform aims to leverage fresh capital to expand its existing consumer product offering to further fuel international expansion.

Hosam Arab, Co-Founder, and CEO of Tabby, cited the company’s growth in terms of transaction volume, which grew 8-fold from last August, whereas from 2020-2021 it witnessed 50x growth.

The two major markets for the platform are Saudi Arabia and UAE, where the former accounts for majority share of the company’s transaction volume since it showcases a fast-paced consumer adoption and surge in online transactions.

Despite being relatively new to this space, the Middle Eastern markets seem to be more willing to opt for BNPL at checkout as compared to other developed markets, mentioned Hosam.

The CEO also disclosed that with the launch under a new retailer, Tabby has noted that 20% of the retailer’s customers are inclined towards BNPL as their first checkout option and is constantly increasing by the day between 30% to 40%.

Currently, Tabby has more than 1.1 million active users using the platform to show across over 3,000 brands every month.

Source Credit: https://techcrunch.com/2022/03/06/sequoia-capital-india-stv-back-dubai-based-bnpl-provider-tabby-in-54m-extension-round/

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