Debt finance

Consumer finance portal Tabby raises $150m in debt funding – largest for a GCC fintech

Dubai: Tabby, the Gulf “Buy Now Pay Later” fintech, has secured $150 million in debt financing from Atalaya Capital Management and existing investor Partners for Growth (PFG). It is the largest secured credit facility by a fintech in the GCC to date and follows Tabby’s Series B expansion earlier this year. The portal, which provides consumers with financing for small to mid-size ticket purchases, has raised $275 million to date.

In a statement, Tabby grew 10x revenue, 8x “active” customers and 3x active retail partners in the first six months of 2022. “Tabby continues to operate with superior economics through controlled risk in a market where access to credit is scarce and consumers cannot easily outgrow each other,” he added.

In May, there was the launch of Tabby Card, which leverages “90% of retail opportunities that happen offline.”

Why is BNPL important?

Market dynamics in the Gulf and the Middle East are such that BNPL transactions are “more relevant compared to developed markets where players continue to face challenges.” In Saudi Arabia, less than 20% of the population has a credit card, compared to more than 70% of the population in the United States.

We continue to be impressed with Tabby’s continued rapid growth while significantly improving their unit economics and PFG is excited to continue supporting Tabby through an expansion of our existing facility.

– Max Penel, co-head of Global Fintech at PFG

Based in New York, the debt financing facility is Atalaya Capital Management’s first transaction in the MENA region. Additionally, San Francisco-based Partners for Growth has increased its initial commitment by $50 million as part of the new facility.

Arab Hosam

“As we approach profitability, we are fortunate to not have to raise capital under current market conditions and as such we are delighted to partner with like-minded individuals at PFG and Atalaya. “

– Hosam Arab, CEO and co-founder of Tabby