Buy Now Pay Later Platform (BNPL) Tabby, previously headquartered in Dubai, now based in Riyadh, has raised $200 mn in its Series D funding round, achieving a valuation of $1.5 billion.
This positions the shopping and financial services app as the first fintech startup unicorn in the Gulf, underlining its substantial growth and market importance in how customers shop and pay.
This is coming less than a year after Tabby’s $58 mn Series C round led by Sequoia Capital India and STV, both of whom participated in this recent unicorn round.
Existing investors like Mubadala Investment Capital, PayPal Ventures and Arbor Ventures joined. At the same time, new backers include the lead investor Wellington Management, one of the world’s top independent investment management firms, and growth equity investor Bluepool Capital.
Read More: How to Spend the Money Your Startup Raises
When a startup reaches a $1 bn valuation and presents a strong case for a stock market float, it achieves the highly sought-after unicorn status.
Over the past three years, Tabby has been quite adept at navigating its funding rounds and making the most of its influence in the rapidly growing BNPL consumer finance universe.
"Tabby set out with a purpose to reshape financial services–one that’s fair and responsible–and with this investment, we can advance our mission across Saudi Arabia and the UAE," CEO and co-founder of Tabby Hosam Arab said.
The financing fortifies Tabby's balance sheet, with the BNPL model now managing more than $6 billion in annualized transaction volumes.
The company has over ten mn users and collaborates with over 30,000 brands.
With the recent launch of "Tabby Shop," customers can discover and track the best products and deals in one place" on this marketplace with over 500,000 products.