Middle East

Gulf buy now, pay later firm Tabby raises $50 mln, to speed up expansion

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DUBAI, Aug 4 (Reuters) - Buy now, pay later firm Tabby will accelerate expansion plans into new Arab markets after raising $50 million in its latest funding round, giving it a $300 million valuation, it said on Wednesday.

Tabby, whose investors include Abu Dhabi state fund Mubadala, is already available in Saudi Arabia and the United Arab Emirates where consumers can use its services with over 2,000 merchants including with brands such as Adidas and Ikea.

Chief Executive Hosam Arab told Reuters Tabby would be operational in Qatar, Kuwait, Oman and Bahrain in the next few months and would expand into North Africa "towards the beginning of next year."

"This investment will enable us to deliver the most rewarding and relevant shopping experience for regional consumers and retailers," he said in an earlier statement.

Tabby, based in UAE financial centre Dubai, plans to double its workforce to around 150 staff, including hiring technical and business development positions, as part of its expansion.

Like other buy now, pay later firms, Tabby offers short-term credit for online and in-store purchases at zero interest to the consumer. The bulk of its revenue is earned via merchant fees though consumers are charged penalty fees if they miss a payment.

The Series B funding round included investment by Global Founders Capital, Saudi venture capital firm STV, Delivery Hero and Mubadala Investment Capital.

To date, Tabby says it has raised more than $130 million, including $50 million in debt which it announced in June.

Reporting by Alexander Cornwell Editing by Mark Potter and Louise Heavens

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