Tabby, the buy now, pay later (BNPL) platform that lets users shop, pay later and earn cash from over 3000 global brands, has completed a Series B extension.
Tabby's initial Series B round of $50 million was announced last August and valued the company at $300 million. The first Series B round was co-led by STV and Sequoia Capital India. Existing investors included Mubadala Investment Capital.
The provider has raised $104 million in Series B funding and plans to use it to expand its consumer product offering and facilitate its international expansion, it said in a statement.
Between the previous year and the last August, tabby grew transaction volume by 8x and 50x, according to Hosam Arab, the company's co-founder and CEO.
The two main markets are Saudi Arabia and the U.S. Saudi Arabia has the lion's share of the company's transaction volume due to solid consumer adoption and increasing online transactions.
The Middle Eastern markets are still in their infancy, but they seem to be adopting BNPL at a faster rate than other developed markets. Tabby sees between 30% and 40% of the customers of a new retailer picking BNPL as their first option at checkout, according to the CEO.
Dubai-based buy now, pay later platform tabby raises $50M at $300M valuation
The company has more than one million users who shop with more than 3000 brands monthly. The users drive over 3 million clicks. Retailers using tabby as their payment solution have seen a decline in the use of cash by their customers.
The reason I think we see this is that we're replacing credit card transactions with cash in our market.
70% to 80% of online transactions are cash-based, and when we provide the consumer with this type of payment method, they have adopted it with open arms. The adoption in our market exceeds that in any other market that we've looked at globally, that's one of the primary drivers we believe for the rapid growth that we've seen.
Tabby said it is in partnership with seven of the ten largest retail groups in the region. They are backed by global players.
Since launching three years ago, tabby has raised close to $185 million in debt and equity. With the addition of Sequoia Capital to its cap table, there is much-needed know-how given the firm's investments in companies like Capital Float, Tillit.
quoia has invested in many similar businesses and the team in India has done a lot on lending and technology, said Arab, who founded the company with COO.
We know the direction that we're taking the business forward. The markets that they have invested in before, as well as the new areas that we are going to expand our product offering into, can add significant value to the company.
Tabby wants to expand to Egypt. Arab believes that the North African nation is an attractive market with underbanked consumers looking for ways to easily spend online outside of cash. Smaller players like Shahry will be in competition with the company.
Tabby will use the investment in hiring more talent and investing in its product to grow its team outside of geographic expansion.
The growth of commerce can be unlocked by consumer-centered digital financial services provided in real-time and without hassle. The manager director of Sequoia India said in a statement that they continue to remain bullish on businesses that can do so at scale.
Tabby has built a strong, customer-first and market-leading business in Saudi Arabia and the U.S., and we are excited to join their journey as they continue to build a consumer.
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