Shopping and financial services app, Tabby has secured up to $700 million in debt financing from J.P. Morgan reflecting the largest asset-backed facility obtained by a fintech company in the MENA region.
The company said in a statement that it has also extended its Series D financing to close $250 million with participation from Hassana Investment Company. The Series D was joined by US-based Soros Capital Management and KSA-based Saudi Venture Capital (SVC).
The financing bolsters Tabby’s balance sheet and expansion plans amidst increasing demand for buy now, pay later services globally. In particular, in the Middle East, BNPL has surged in popularity, this year, accounting for more than 23% of ecommerce sales revealed a recent survey from online retail management company Uplo.
Hosam Arab, CEO and Co-Founder of Tabby, said: “Securitization is a major milestone, not only for Tabby but also the first of its kind for the region. It mirrors the rapid growth and evolution of the fintech landscape in our markets. We’re incredibly proud of our collaboration with J.P. Morgan, Hassana, Soros and SVC. Their teams’ confidence in our vision and capabilities underscores Tabby’s pivotal role in reshaping personal finance and shopping in MENA.”
The latest financing caps a significant year for the buy now, pay later platform. In November, Tabby raised $200 million in equity financing at a valuation of $1.5 billion making it the first fintech in the Middle East and North Africa (MENA) region to achieve unicorn status.
In July, the company received approval by Saudi Central Bank to provide its BNPL services in the region while it has also inked several new deals including partnerships with Saudi Arabia-based Almosafer and Paytabs. In addition, it launched Tabby Shop, a digital shopping assistant designed to simplify the shopping process.
George Deves, Co-Head of Northern European ABS at J.P. Morgan, said: “We are pleased to be collaborating with Tabby on this new transaction. A vibrant and growing consumer lending sector is vital for the local economy and we are pleased to work with Tabby on this strategic initiative to support retail credit throughout the Middle East.”
Ahmed Al Qahtani, Chief Investment Officer for Regional Markets at Hassana Investment Company, said: “The recent Series D funding round, coupled with the $700 million asset-backed securitization, will support Tabby in amplifying its reach and impact. As a committed and long term investor, we believe in Tabby’s vision to empower consumers and merchants alike and reshape the future of financial services in Saudi Arabia and the wider MENA region.”
