Buy now, pay later (BNPL) start-up for Saudi Arabia and the United Arab Emirates Tiger raised $54 million in a Series B funding round led by Sequoia Capital India and Saudi venture capital firm STV, according to multiple news outlets.
The company has so far raised $180 million in debt and equity financing. The new capital will be used for the expansion of the startup’s product suite and to expand into several new verticals. The company’s Series B in July raised $50 million in debt funding at a valuation of $300 million, a company says press release at the time.
“We want to expand into markets where we see direct overlap, either from a consumer perspective or from a merchant perspective,” the CEO said. Arab Hosam told Bloomberg.
Arab added that the sector in the Middle East is “extremely underpenetrated and there is still significant room for expansion and growth opportunities solely within our buy-now, pay-later core product.”
See also: Tabby remains independent amid growing consolidation in the MENA BNPL space
Founded in 2019 in Dubai, United Arab Emirates, Tabby enables retailers to offer their customers interest-free installments online and in-store. Customers have the option to defer payment for purchases for up to 30 days or pay four equal monthly installments at no cost. The Tabby app is downloaded 3,000 times a day and has over 4,000,000 active users.
Tabby also has a cashback loyalty program that rewards users who purchase using the Tabby app. Cashback funds can be used to refund installments or deposited into their bank accounts.
“While BNPL is still in its infancy in the GCC (Gulf Cooperation Council), the sector has seen one of the fastest consumer adoption rates in the world, with 24% of consumers in the region reporting having used the option in 2021,” Tabby said in a statement. “This fundraising is a good illustration of the growth prospects for the means of payment in the region.
Read more: Middle Eastern BNPL Company Tabby Partners with New York’s Splitit
Marc Venema, senior vice president of strategy at Delivery Hero, a July Series B investor, said in the press release that the investment in tabby is Delivery Hero’s first FinTech investment in the MENA region, which supports the company’s belief in the “power of entrepreneurship”. The MENA region is also a “strategically important region for Delivery Hero”.
Delivery Hero owns and operates a number of regional food and grocery delivery businesses in the region, including Talabat, InstaShop, and Hunger Station.
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