Tabby

Market position

Tabby describes itself as operating profitably in the GCC, in contrast to Western BNPL peers such as Affirm, Afterpay and Klarna that often operate at a loss. Its 2023 Series D made it the first fintech unicorn in the Gulf at a $1.5 billion valuation, and its user base of over 10 million was reported as close to Afterpay's 16 million and Affirm's 14 million active users, though far below Klarna's 150 million customers.

Operates in markets with low credit card penetration where installment credit is a primary rather than supplementary credit source, under regulatory regimes that introduced BNPL permits early (for example Saudi Arabia). Management attributes profitability to this market structure combined with affordability checks, and the product bundles pay-later, cards, cashback, free UAE transfers and a deals marketplace in a single app.

Technology

Consumer mobile app with tokenized payment credentials, physical and virtual cards, Apple Pay integration for iPhone and Apple Watch, merchant checkout integration for online and in-store financing, and consumer affordability/ability-to-pay checks used in underwriting.

Go-to-market

Distribution is through merchant checkout integrations across more than 30,000 brands and major MENA retail groups, in-store acceptance (over 4,000 UAE stores accepting Tabby Cards as of the 2023 report), and direct consumer acquisition via the app, cashback and deals features.

Consumers in Saudi Arabia, the UAE and Kuwait, particularly shoppers with limited access to credit cards (roughly 15% credit card penetration in Saudi Arabia and about 40% in the UAE), as well as users who prefer tokenized payments; on the merchant side, e-commerce and physical retailers, including large MENA retail groups and global brands.

Geography

Headquartered in Riyadh, Saudi Arabia, after relocating from Dubai. Operating markets include Saudi Arabia (about 80% of its customer base), the UAE and Kuwait. Tabby entered Egypt and exited that market in February 2023, roughly six months later, citing macroeconomic reasons, while leaving open a possible return.

History

Tabby launched several years after Western BNPL platforms such as Afterpay and Affirm. It raised a $54 million extension round backed by Sequoia Capital India and STV while Dubai-based, followed by a $58 million Series C at a $660 million valuation that marked PayPal Ventures' first GCC investment. In October 2023 it raised a $200 million Series D at a $1.5 billion valuation, becoming the Gulf's first fintech unicorn, and relocated its headquarters from Dubai to Riyadh amid IPO preparations. In February 2025 it raised a $160 million Series E at a $3.3 billion valuation.

Risks & controversies

Exposure to consumer credit performance and to BNPL regulation; market-selection risk illustrated by the February 2023 exit from Egypt after about six months, attributed to macroeconomic conditions, low purchasing power, a small e-commerce market and weaker credit-reporting infrastructure. The timing of a planned Tadawul listing remains uncertain. Broader BNPL peers have faced valuation cuts and funding pressure amid rising interest rates.