From Pymnts · PYMNTS · · 1m 30s
Tabby hits $6.5 billion on a $230 million round
Saudi BNPL app Tabby just raised $230 million to go deeper in the Gulf, while US shoppers quietly pick card installments instead.
In brief
Saudi BNPL app Tabby just raised $230 million to go deeper in the Gulf, while US shoppers quietly pick card installments instead. Tabby is betting on licences and depth in two markets rather than expansion everywhere, and the installment race is being won by credit cards, not BNPL apps. Originally reported by Pymnts.
A $230 million raise
Saudi Arabia-based BNPL company Tabby announced $230 million in new funding on Monday, September 14, valuing the business at $6.5 billion.
Licences unlock the next act
Tabby now holds consumer and SME finance licences in Saudi Arabia and a stored value facilities licence in the UAE, letting it sell far more than pay-in-four.
“These licences allow us to build well beyond where Tabby started”
Deeper, not wider
CEO Hosam Arab told Reuters the money is about going deeper in Saudi Arabia and the UAE, Tabby's two core markets, rather than chasing new countries.
“are primarily about giving us the capital to go deeper in our two core markets”
The scale behind the number
Tabby processes more than $18 billion in annualized transaction volume for 25 million registered users, working with 70,000 businesses including Amazon and Shein.
Cards beat BNPL on vacation
New PYMNTS research found 26% of travel spenders used credit card installments this summer against just 8% who used BNPL. The incumbent plan won the trip.
“Credit Card Installments Outrun BNPL in Summer Travel Surge”
Who splits payments, and why
45% of Gen Z and 42% of millennials used card installments, and $100k+ earners were 57% more likely than those under $50k. BNPL users want budget fit, card users want points.
“BNPL users placed the most value on selecting a payment frequency that fit their monthly budgets.”
The bottom line
Tabby is betting on licences and depth in two markets rather than expansion everywhere, and the installment race is being won by credit cards, not BNPL apps.
