BNPL Tabby secures $150 million loan to expand in MENA region
UAE-based online payments provider Tabby has secured $150 million in debt financing to support its growth and product expansion in the Middle East and North Africa region (MENA).
The credit facility came from Atalaya Capital Management and existing investor Partners for Growth (PFG), according to a press release. The deal marks Atalaya Capital Management’s first venture into the MENA region and brings Tabby’s total capital raised to date to $275 million following a Series B extension earlier this year.
Tabby, which provides buy now, pay later (BNPL) solutions and other e-commerce services, works with more than 4,000 global brands and small and medium-sized enterprises (SMEs), the statement said. Major retailers include Adidas, IKEA, H&M, Bath & Body Works, Nike and Swarovski, the statement said.
Market dynamics in the MENA region make BNPL more relevant than in developed markets where players continue to face challenges. In Saudi Arabia, for example, less than 20% of consumers have a credit card, according to the release. By comparison, more than 70% of American adults do.
BNPL providers like Tabby can offer more accessible and lower-cost loans. It was this opportunity that Tabby CEO and co-founder Hosam Arab wanted to tap into when he launched the company in February 2020.
As he told PYMNTS in an interview, other payment methods “lacked flexibility, [and] they were very frustrating, so most customers basically opted to pay for e-commerce purchases in cash, which for an online retailer presented a lot of complexity and barriers to growth.
Read more: Tabby remains independent amid growing consolidation in the MENA BNPL space
Since Tabby’s debut, BNPL has exploded across the MENA region and the wider Gulf Cooperation Council (GCC) region, with new entrants vying for a slice of the pie. But Arab said the brand recognition and market share Tabby has won as part of its first-mover advantage continues to give the company an edge over growing competition.
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