Saudi Arabia’s burgeoning fintech landscape has taken another leap forward with Tabby, the region’s leading Buy Now, Pay Later (BNPL) platform, securing $950 million in financing and announcing bold plans to expand its footprint. This move aligns with Saudi Arabia’s Vision 2030 to foster innovation and elevate the Kingdom as a global tech hub. Here’s how Tabby is reshaping the financial and technological ecosystem in Saudi Arabia and beyond.
A Record-Breaking Financing Milestone
Tabby’s $950 million financing includes $700 million in receivables securitization from J.P. Morgan, marking the largest asset-backed deal for a fintech in the Middle East and North Africa (MENA) region. This deal, coupled with an additional $250 million in Series D funding, positions Tabby to deepen its product offerings and reach within Saudi Arabia. Key investors in this round include Saudi Venture Capital (SVC), Hassana Investment Company, and international players like Soros Capital Management.
According to Hosam Arab, CEO of Tabby, the company’s mission is to “empower consumers and merchants alike” by offering flexible financial solutions. This financing underscores the growing demand for BNPL services, which have already attracted over 10 million users and partnerships with 30,000 retailers, including global brands like Amazon, Adidas, and IKEA.
Saudi Arabia: The Heart of Tabby’s Expansion
Saudi Arabia accounts for a significant portion of Tabby’s customer base, driving the company’s decision to relocate its headquarters to Riyadh. This strategic move complements the Kingdom’s efforts to bolster financial technology through supportive policies and initiatives. The Saudi Central Bank’s regulatory framework has played a key role in enabling Tabby’s growth and innovation.
Moreover, this expansion aligns with the government’s push to enhance financial literacy and inclusion, key pillars of its economic diversification agenda. With Saudi Arabia’s fintech market expected to grow exponentially, Tabby’s innovative offerings position it as a central player in shaping the region’s financial landscape.
Technology at the Core of Tabby’s Model
Tabby’s success is deeply rooted in its ability to leverage cutting-edge technology. The platform integrates AI-driven insights to optimize user experiences and improve credit decisioning, ensuring seamless transactions for both consumers and merchants. These innovations not only drive customer satisfaction but also create scalable solutions for retailers looking to expand their reach.
A Boost for the Saudi Economy
Tabby’s expansion promises significant economic benefits for Saudi Arabia. By supporting local businesses and creating jobs, the company contributes to the Kingdom’s broader goals of fostering a knowledge-based economy. The collaboration with global financial giants like J.P. Morgan and domestic investors highlights Saudi Arabia’s growing prominence as an investment destination.
What’s Next for Tabby?
As Tabby continues its journey, it is poised for an initial public offering (IPO) on the Saudi stock exchange. This move is expected to further cement its leadership position in the MENA region and attract additional global investments. The IPO will also signal the maturity of Saudi Arabia’s fintech sector, encouraging more startups to establish roots in the Kingdom.
Conclusion
Tabby’s remarkable achievements underscore the transformative power of technology in reshaping traditional finance. By combining innovation, strategic partnerships, and a consumer-first approach, the company is setting new benchmarks for fintech in Saudi Arabia and beyond. As the Kingdom continues its quest to become a global tech powerhouse, Tabby’s journey is a testament to the endless possibilities of vision and execution.
This success story not only reflects Tabby’s resilience and foresight but also showcases Saudi Arabia’s potential to lead the fintech revolution in the region.
Source: Fintech Avenue,TechChannel,Hindustan Times.
https://gulfmagazine.co/the-future-beckonsvision-for-smart-cities-in-2024/
