MENA's First Independent Fintech Billion-Dollar Company
In a landmark achievement for the region's tech scene, Tabby, the Dubai-founded Buy Now, Pay Later (BNPL) provider now headquartered in Saudi Arabia, officially achieved unicorn status, marking it as the Middle East's first independent fintech company to reach a billion-dollar valuation. This milestone, secured via its Series D funding round in late 2023, underscores Tabby's explosive growth and the immense potential driven by the booming MENA BNPL market and Saudi Arabia's ambitious Vision 2030.
The Meteoric Rise of BNPL in MENA
The Buy Now, Pay Later model has surged globally, and the Middle East is a key growth hotspot. Factors like a young, tech-savvy population, high smartphone penetration, booming e-commerce, and a desire for flexible, interest-free payment alternatives to traditional credit have created fertile ground. Consumers appreciate the ability to manage cash flow better while getting immediate access to goods, driving BNPL's valuation rapidly upwards. Tabby strategically positioned itself right at the intersection of this consumer demand and financial innovation.
Tabby's Journey to Unicorn Status
Founded in 2019, Tabby aimed to bridge gaps in financial services by offering customer-centric, flexible payments. Its growth has been remarkable:
Strategic Focus: Recognizing the market potential, Tabby made a strategic move, relocating its headquarters to Saudi Arabia, driven by the fact that, as CEO Hosam Arab noted in interviews, 75-80% of Tabby's customer base originates from the Kingdom.
Rapid Growth: Tabby saw exponential growth, reaching 400,000 users by mid-2021, surpassing 10 million by late 2023, and now exceeding 15 million registered users. Its merchant network exploded from a few thousand to over 40,000 retailers and small businesses.
Funding Milestones: Tabby successfully navigated multiple funding rounds (Seed, Series A, B, C, D, E).
Unicorn Status Achieved (Nov 2023): A $200-$250 million Series D round valued the company at $1.5 billion.
Continued Ascent (Feb 2025): A $160 million Series E pushed the valuation to $3.3 billion.
Regulatory Milestones: Obtaining the BNPL license from the Saudi Central Bank (SAMA) after graduating from its regulatory sandbox was highlighted by Arab as an "important step."
Beyond BNPL: Tabby's Expanding Ecosystem
Tabby is aggressively evolving beyond its core "Split in 4" BNPL offering into a comprehensive financial services and shopping app by:
Launching Tabby Card.
Introducing Tabby Plus (subscription service).
Adding Tabby Shop (deal discovery) and Tabby Care (buyer protection).
Acquiring Saudi digital wallet provider Tweeq.
Developing digital spending accounts and money management tools.
The Saudi Fintech Boom: A Vision 2030 Catalyst
Tabby's rise coincides with Saudi Arabia's dramatic fintech expansion, a key pillar of Vision 2030's economic diversification goals. Key drivers include:
Explosive Growth: The number of fintech companies surged past 200 by end-of-2023, with jobs quadrupling and investment hitting $1.8 billion cumulative.
Government & Regulatory Support: Initiatives like Fintech Saudi, coupled with progressive frameworks from SAMA and the CMA (including regulatory sandboxes and Open Banking rules), actively encourage innovation.
Market Demand: High digital adoption and strong e-commerce growth fuel demand for digital payments and BNPL.
Meet the Founders
Tabby was co-founded in 2019 by Hosam Arab (CEO) and Daniil Barkalov. Hosam Arab, previously the co-founder and CEO of online retail site Namshi, brought significant e-commerce and regional market experience to the venture. Together, they identified the opportunity to introduce more flexible, consumer-friendly payment options to the MENA market.
Key Investors Backing Tabby
Tabby's rapid growth has been fueled by significant backing from prominent regional and international investors across its funding rounds. Key investors include:
Seed/Early Stage: Raed Ventures
Series A: Arbor Ventures, Mubadala Investment Company
Series B: STV, Global Founders Capital (GFC)
Series C: Peak XV Partners (formerly Sequoia Capital India & SEA), STV
Series D (Unicorn Round): Wellington Management (lead)
Series E: Blue Pool Capital (lead), Hassana Investment Company (lead), STV, Wellington Management
Other notable investors across various rounds have also participated, reflecting broad confidence in Tabby's model and execution.
About Tabby
Founded in 2019 by Hosam Arab and Daniil Barkalov, Tabby is the MENA region's leading financial services and shopping app, now headquartered in Riyadh, Saudi Arabia. Its core offering is Buy Now, Pay Later (BNPL), allowing consumers interest-free installment payments. Serving over 15 million users and 40,000+ retailers, Tabby became the region's first independent fintech unicorn in late 2023 and is currently valued at $3.3 billion.
Looking Ahead: IPO, Competition, and Vision 2030
Tabby is actively preparing for an Initial Public Offering (IPO), potentially on the Saudi Tadawul exchange. Hosam Arab views this as the "logical next step." This move would provide capital for further expansion and solidify its leadership. However, Tabby faces intensifying competition from players like Tamara and Postpay, and must navigate the evolving BNPL regulatory landscape. Its alignment with Saudi Arabia's Vision 2030 goals positions it strongly, but continued innovation is key.
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