Tabby raises $58M at $660M valuation as PayPal Ventures makes first GCC investment TechCrunch


MENA Buy now, pay later on startup Tabby It raised $58 million, led by Sequoia Capital India and STV, with a valuation of $660 million. Investors have been involved in leading financial technology companies chain extension b Tour last June.

PayPal Ventures, the global investment arm of PayPal, is one of the co-investors (this marks its first investment in the Gulf Cooperation Council (GCC) but second in the MENA region) After the Egyptian Financial Technology Paymob). Other investors in the new financing round include Mubadala Capital Investments, Arbor Ventures and Endeavor Catalyst.

According to a statement shared by the Dubai-based company, the funding will be used to expand Tabby’s product line into a slew of consumer financial services and support the company’s growing operations that now include Egypt. The fintech has raised more than $410 million in equity and debt since its launch in 2019.

Until last September, Tabby, which allows users to shop with flexible payments online and in stores from global brands, including H&M, Adidas, IKEA, noon and Bloomingdale’s, was active in Saudi Arabia, the United Arab Emirates and Kuwait. Co-founder and CEO Hossam Arabin an interview with TechCrunch last Junedescribed Egypt as an attractive market with underbanked consumers looking for ways to spend online outside of what is readily available to them, which is cash.

“The Egyptian consumer is now accustomed to buying in installments, which is usually accompanied by additional costs in the form of interest or additional fees. So, offering a completely free product to the customer was a completely different factor, and we have seen a lot of strong demand there,” said Arab, who provided an update. On how to achieve expansion. Having said that, the Egyptian market and the economy as a whole are in a somewhat difficult situation at the moment as their currency continues to depreciate. Thus, there are clear challenges for this market, at least in the short to medium term, outside of pure consumer demands.”

Consumer demands vary across regions, and noticing the nuances behind each market is enough to survive as a fintech. In developed countries where credit is traditionally accessed via credit cards, BNPL can be considered as a nice way to get it, mainly because of the installment aspect. However, for developing markets where credit penetration is low or you have a demanding credit history, BNPL has a more robust use case. This is why Arab believes that his startup is somewhat isolated from the problems affecting Affirm, Afterpay and Klarna, and the global and public BNPL players who have become incurring worrisome losses and thus, hits on their rating.

I would say there have been setbacks from a demand perspective. And just as importantly, the pending credit crunch that’s coming to some of these more developed markets brings higher credit risk, which may eventually hit the bottom line for these companies.”

“Now, the structure of the economy is different for some of our markets [Tabby] in a day. Credit spread in the MENA region is much lower than other developed markets. From a credit risk perspective, consumers are not overwhelmed because they don’t have two or three credit cards. So from a demand perspective, there’s a real gap and opportunity that we’re filling.”

Despite valuation crises and subdued demand for growing companies globally, Tappy made it through Double its rating 18 months ago, although it raised less capital in a subsequent round; As such, it is currently one of the most valuable startups in the MENA region. Controlling this current valuation, Arab said, conveys the importance of Tabby’s product and its ability to build a sustainable business in a reasonably challenging space, including startups such as Tamara, based in Saudi Arabia and Egypt. code And safe.

The importance of Arabic speaking can be seen in Tapi’s new figures. Last March, for example, Buy Now, Pay Later had just over 1 million active users who shopped with more than 3,000 brands annually. Now, Tappy says more than 3 million users shop from more than 10,000 brands, including nine of the top 10 retail groups in the Middle East and North Africa.

The fintech company has also issued more than 150,000 Tabby Cards just six months after launching its card program, with in-store sales now making up more than 10% of the company’s turnover. The company stated that its revenues increased by 5 times over the past year.

Speaking about the investment, Tappi has an opportunity,” said JC Ravishankar, Managing Director, Sequoia Capital India. It offers many innovative products to its customers and improves accessibility while increasing affordability. About this, the CEO explained to Arab that Tabby recently launched a product for everyday purchases, such as groceries and food, and it will allow customers who do not have access to credit cards to make purchases and pay at the end of the month.

“There are clear gaps in the market when we look at delivering better financial services and products to consumers. An area where we see a huge opportunity is allowing our customers to use us for their day-to-day purchases.” We think this is a great opportunity to provide deeper engagement with our customers as they start to Deal with us frequently.”



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