Tabby Raises $160M, Eyes $3.3B Valuation Ahead of IPO

In a Series E investment round, Saudi Arabia's fintech giant Tabby raised $160 million, increasing its valuation to an astounding $3.3 billion, more than double its $1.5 billion estimate from late 2023. Hassana Investment Company, the Saudi state pension investment arm, and Blue Pool Capital, a company associated with Alibaba co-founder Joe Tsai, led the financing. Additional investors included Wellington Management, Mubadala Investment Company, and Saudi Technology Ventures (STV), all of which have previously supported the business.

With a rapidly expanding user base and rising merchant adoption, Tabby has emerged as the top buy now, pay later (BNPL) platform in the Middle East and North Africa (MENA) region. In an indication of a significant push toward the public markets, the company has already hired HSBC, JPMorgan, and Morgan Stanley as advisors for a possible IPO within the next 18 months. Before its stock market debut, this funding round is anticipated to support strategic market entries, operational scaling, and product expansion.

Tabby’s Expansion Beyond BNPL

To become an enhanced digital finance platform, Tabby has rapidly grown beyond its initial BNPL concept.

CEO Hosam Arab stated that the company is no longer just a BNPL provider. “This investment allows us to scale a financial platform that makes everyday payments and money management easier for our customers.”

Revenue Model and Monetization

Tabby’s revenue model is evolving to sustain its rapid expansion. While the BNPL segment remains its core business, the fintech is now tapping into additional revenue streams.

The company primarily earns through merchant commission fees, with retailers paying 4-6% per transaction to offer BNPL at checkout. These fees have fueled strong revenue growth, with gross merchandise volume (GMV) exceeding $10 billion annually.

Beyond BNPL, Tabby’s new financial products—like digital wallets and payment cards—introduce additional revenue opportunities:

With these multiple income streams, Tabby is positioning itself as a financial super-app, offering more than installment plans.

Market Adoption and Competitive Edge

Tabby has quickly built a dominant market presence, both in terms of user adoption and merchant partnerships.

The fintech boasts over 15 million users, with a target of reaching 20 million by the end of this year. Its merchant network now exceeds 40,000 retailers, including major global names like Amazon, Shein, and top regional e-commerce platforms. These integrations have been instrumental in driving transaction volumes and increasing merchant conversions.

Unlike many fintechs that struggle with consumer trust, Tabby has proactively introduced buyer protection programs and transparent repayment structures, ensuring responsible lending. The regulatory landscape in Saudi Arabia has been supportive, with the Saudi Central Bank (SAMA) pushing for fintech innovation as part of Vision 2030.

Tabby’s latest valuation and regional expansion have solidified its market leadership compared to its closest BNPL competitor, Tamara. The acquisition of Tweeq gives it a further competitive edge by integrating digital banking capabilities, allowing it to differentiate from traditional BNPL services.

Investor Confidence and IPO Plans

Tabby’s successful funding round highlights strong investor confidence, especially since fintech investments declined by 20% in 2024.

The combination of global and regional investors reflects an understanding that the Middle East fintech market is still growing, making it a lucrative investment opportunity.

While a listing on Saudi Arabia’s Tadawul exchange is the most probable option, international exchanges in London, Dubai, or New York are still being considered.

One investor noted, “Tabby’s scale, strategic expansion, and regulatory positioning make it a prime IPO candidate in 2025.”

Tabby’s $160M Series E funding cements its position as the most valuable fintech startup in the Middle East. The company has outgrown its BNPL roots, competing in digital payments, subscriptions, and financial services. With a planned IPO, strong investor confidence, and aggressive expansion plans, Tabby is on track to become one of the region’s most influential fintech players.

As it prepares for its public listing, the question is whether Tabby can sustain its rapid growth and successfully transition into a long-term financial services powerhouse.