Tabby: UAE’s first buy now pay later secures US$7mn funding
Launched in 2019 by Hosam Arab, who was previously co-founder and CEO of Namshi, an online retail site, Tabby began with an initial US$2m seed funding with a mission to empower consumers with an easy solution to buy what they want, when they want, while remaining in control.
Tabby also helps retailers across the United Arab Emirates (UAE) and Kingdom of Saudi Arabia (KSA) boost their sales by offering their customer flexible payment solutions.
The fintech startup’s ‘pay later’ option provides an alternative to cash on delivery (COD), by allowing customers to purchase products online via only their mobile phone number and email address.Tabby’s pay in installment options provides flexibility for customers to pay for purchases in multiple interest free installments without the need for a credit card.
“E-commerce in the GCC is rapidly growing as a result of Covid-19 as consumers shift their purchase behavior to do more of their shopping online. Coupled with the likely negative financial impact on businesses and consumers in the months to come, Tabby offers a timely and much needed financial product to help customers better manage their spending by splitting their purchases into multiple installments while shopping at their favorite retail stores,” commented Tabby in a company statement.
“We are very pleased to bring our best-in-market solution to Saudi Arabia at a time when consumers and merchants alike will be strapped for cash. This funding will give our merchant partners further security and assurance that we are sufficiently capitalized to support their sales,” added Hosam Arab, co-Founder and CEO of Tabby.
The startup’s most recent funding round totalling US$7mn was led by Raed Ventures, with additional participation from MSA Capital and existing investor Arbor Ventures.
“Hosam and his team have built an impressive product that structurally solves key friction points in a transaction for both consumers and merchants, which is especially relevant given the current pandemic. We’re very excited to partner with Tabby, and support its timely launch in Saudi Arabia,” commented Saed Nashef, Raed Ventures’ Founding Partner.
In addition to the secured funding of US$7mn the fintech startup has also signed an agreement with Apparel Group - one of the largest retail groups in the Middle East - to offers its solutions across Apparel Groups entire online portfolio, including the likes of 6thStreet.
“Given the prevalence of cash on delivery in our market and the complexity it presents to our operations, we were keen to partner with Tabby to provide our customers with a simple alternative to COD that takes the hassle out of the process yet keeps our customers happy,” concluded Dharmin Ved, CEO of 6th Street.
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