Tabby, the payments and shopping app for the Middle East and North Africa, has secured $150 million in debt financing from Atalaya Capital Management and existing investor Partners for Growth (PFG).
Hosam Arab, CEO and Co-Founder of Tabby, said: “Debt commitments from two reputable institutions is validation of our strong track record and business model. As we near profitability, we’re in the fortunate position of not having to raise equity under the current market conditions and as such are thrilled to partner with the like-minded people at PFG and Atalaya.”
This facility marks Atalaya Capital Management’s first deal in the MENA region, with headquarters in New York. In addition, San Francisco Bay Area-based Partners for Growth (PFG) has increased their initial $50 million commitment under the new facility. This is the largest credit facility ever secured by a fintech in the GCC. Tabby’s total capital raised to date is $275 million, following its Series B extension earlier this year.
The investment strengthens Tabby’s balance sheet and helps it maintain its steady growth in transaction volumes and product expansion. Tabby has recently been chosen as a payment partner by major brands such as H&M, Bath & Body Works, Nike, Swarovski, and others. Tabby will continue to provide MENA consumers with access to credit that would otherwise be unavailable to them, with no interest or other fees.
Justin Burns, Managing Director of Atalaya Capital, said: “Atalaya is excited to partner with Tabby in its mission to expand access to credit and payments in markets where there are limited existing options.”
Tabby announced the launch of Tabby Card in May, a first-of-its-kind solution in MENA that taps into 90% of retail opportunity that occurs offline.
The BNPL environment in MENA
The market dynamics in MENA make BNPL far more relevant than in developed markets, where players continue to face challenges. In Saudi Arabia, the Arab world’s largest economy, less than 20% of the population has a credit card, compared to more than 70% in the United States. Due to the Kingdom’s limited access to credit solutions, Tabby is a much-needed solution for consumers seeking more flexibility and control over their finances.
In the first half of 2022, Tabby grew 10x in revenue, 8x in active customers, and 3x in active retailer partners compared to the same period last year. Tabby’s superior economics are driven by controlled risk in a market where credit is scarce and consumers cannot easily overextend themselves.
