BNPL Tabby secures $150 million loan to expand in MENA region

UAE-based online payment provider Tiger secured $150 million in debt financing to support its growth and product expansion in the Middle East and North Africa (MENA) region.

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 statement. By comparison, more than 70% of American adults do.

BNPL providers like Tabby can offer more accessible and lower-cost loans. It is this opportunity that the CEO and co-founder of Tabby Arab Hosam wanted to operate when he started the business 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.

For all PYMNTS EMEA coverage, subscribe daily EMEA Newsletter.



About: Results from PYMNTS’ new study, “The Super App Shift: How Consumers Want To Save, Shop And Spend In The Connected Economy,” a collaboration with PayPal, analyzed responses from 9,904 consumers in Australia, Germany, UK and USA. and showed strong demand for one super multi-functional app rather than using dozens of individual apps.

About Nicole Harmon

Check Also

Online “stimulus loan” offers are not tied to government programs

Quick setting Three stimulus payments have been sent to Americans to ease the economic impact …