Dubai-based payments and shopping app Tabby has secured $150 million in debt financing from Atalaya Capital Management and existing investor Partners for Growth (PFG). This is Atalaya Capital Management’s first transaction in the MENA region.
The announcement comes a few months after Tabby announced its Series B expansion earlier this year. The latest round brings Tabby’s total capital to $275 million.
Tabby will continue to provide MENA consumers with credit otherwise unavailable without interest or other charges.
Hosam Arab, CEO and co-founder of Tabby, said: “The debt commitments of two respected institutions are a testament to our strong track record and business model. As we approach profitability, we are fortunate not to have to under current market conditions Raising equity and looking forward to working with like-minded individuals at PFG and Atalaya.”
The rival from Dubai for Klarna
Founded in 2019 by Daniil Barkalov and Hosam Arab, Tabby is a buy now pay later company that allows consumers to buy and pay for free in 4 installments. The company operates similarly to Swedish buy now pay later (BNPL) giant Klarna.
In May, the Dubai-based company announced the launch of the Tabby Card, a unique solution in the MENA region that unlocks 90% of offline retail opportunities.
In the first half of 2022, compared with the same period of the previous year, Tabby’s sales increased by 10 times, the number of active customers increased by 8 times, and the number of active trading partners increased by 3 times. Major brands such as H&M, Bath & Body Works, Nike, Swarovski and others have chosen Tabby as their payment partner in recent months.
Klarna’s competitors are currently active in Saudi Arabia, the United Arab Emirates, Egypt and Kuwait.
Justin Burns, Managing Director of Atalaya Capital, said: “Atalaya is delighted to be partnering with Tabby on its mission to expand access to credit and payments in a market of limited opportunity.”
Max Penel, global co-head of fintech at PFG, said: “We continue to be impressed with Tabby’s continued rapid growth while significantly improving the economics of its division, and PFG is delighted to continue to support Tabby in the expansion of our existing facility.”