Saudi Fintech Tabby Raises $233 Million at $6.5 Billion Valuation
The funding gives Tabby more capital to expand its financial services across the Gulf.
Saudi Fintech Tabby Raises $233 Million at $6.5 Billion Valuation to Accelerate Regional Financial Services Expansion
Saudi Arabian fintech company Tabby has raised $233 million in its latest funding round, valuing the company at $6.5 billion as it pushes deeper into consumer finance, payments and other financial services across Saudi Arabia and the United Arab Emirates.
The Series F equity round was led by existing investor Blue Pool Capital and included participation from HSG, Wellington Management, and Arbor Ventures. The transaction gives Tabby additional capital to expand its financial products as the company moves beyond its original buy now, pay later business.
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Tabby has developed from a payment service that allows consumers to divide purchases into instalments into a broader financial technology platform. The company now offers products covering payments, consumer financing, business financing, and money management.
The latest investment comes as Saudi Arabia’s financial technology sector continues to develop alongside the country’s broader push to increase digital payments and expand access to financial services. Tabby said its growth strategy is focused primarily on Saudi Arabia and the UAE, where it has built a large customer and merchant base.
Tabby’s Business Has Expanded Beyond Buy Now, Pay Later
Tabby’s original business was built around buy now, pay later, allowing customers to split the cost of purchases into instalments. The model helped the company establish relationships with millions of consumers and tens of thousands of merchants across the region.
The company is now using that customer base to build a wider financial services business.
Tabby said it has 25 million registered users and more than 70,000 business partners. Its annualized transaction volume has reached more than $18 billion, showing the scale of payments moving through its platform.
The company has also reported profitability since 2023, an important milestone for a fintech operating in a sector where rapid customer acquisition and expansion can require substantial amounts of capital.
Rather than remaining focused only on financing purchases at checkout, Tabby is expanding into products that can be used throughout a customer’s financial life. That includes longer-term consumer financing, business financing, digital payments, and financial management.
Saudi Arabia Becomes a Major Growth Market
The company has obtained consumer and small and medium-sized enterprise finance licenses from the Saudi Central Bank, allowing it to expand its lending activities beyond short-term instalment payments.
The SME licence is particularly significant because small and medium-sized businesses represent a large part of the Saudi economy but can face challenges accessing traditional financing.
Through its SME financing operations, Tabby can provide working capital to businesses, giving the company another source of financial activity beyond consumer purchases.
Tabby has also expanded its presence in digital payments through the acquisition of Tweeq, a Saudi Central Bank-licensed digital wallet. The acquisition gives Tabby additional capabilities around digital accounts, cards, and money transfers.
The move puts the company in a position to compete across several parts of the financial services market rather than depending on a single product.
UAE Expansion Adds Another Financial Services Market
The company has obtained a Stored Value Facilities licence from the Central Bank of the UAE. The licence supports the company’s ability to provide stored-value and payment services in the country.
Tabby has also introduced Tabby Cash in the UAE, which gives customers access to a digital account and payment card without account or card fees.
The product allows customers to earn cashback on eligible card spending and transfer money locally and internationally.
For Tabby, expanding in both Saudi Arabia and the UAE gives the company access to two of the Gulf’s largest and most developed digital economies while allowing it to build products around an existing base of customers and merchants.
$233 Million Comes as Tabby Broadens Its Financial Platform
The new $233 million investment is not simply aimed at expanding Tabby’s existing buy now, pay later operation.
The company is using the latest funding to support a broader financial services strategy, with its products increasingly covering financing, payments, and money management.
This expansion could also increase the amount of revenue Tabby can generate from each customer. Instead of interacting with the company only when making a purchase through a participating merchant, customers can potentially use Tabby’s services for payments, transfers, financing, and other financial needs.
The strategy also gives Tabby a larger addressable market. Consumer financing remains an important part of the business, but business financing and digital payment services provide additional areas for expansion.
The company’s existing merchant network is another advantage. With more than 70,000 businesses already connected to its platform, Tabby has an established distribution network through which it can introduce additional financial products.
Tabby Valuation Reaches $6.5 billion
The latest financing values Tabby at $6.5 billion, strengthening its position among the region’s most valuable privately held fintech companies.
The valuation is also a significant indicator of investor confidence in the company’s ability to expand beyond its original business model.
Blue Pool Capital led the Series F round, while HSG, Wellington Management, and Arbour Ventures joined the investment. Several of the investors were already familiar with Tabby’s business, with existing shareholders participating in the latest round.
The company said the transaction also includes a liquidity opportunity for employees. Since 2023, Tabby has facilitated more than $100 million in employee share sales through share tenders.
That provides employees with an opportunity to realise part of the value of their holdings while the company remains privately held.
What Tabby’s Expansion Means for Gulf Fintech
Tabby’s latest funding reflects a wider change taking place in Gulf financial technology.
Fintech companies in the region are increasingly moving beyond individual products and attempting to become broader financial platforms. Payments, digital wallets, consumer lending, business financing, and money management are increasingly being combined within the same digital ecosystems.
For Tabby, the advantage is that it already has a large consumer and merchant network from its buy now, pay later business. Expanding into additional services allows the company to build on that existing network instead of developing every product from the beginning.
The challenge will be managing that expansion while maintaining profitability and meeting regulatory requirements across different financial products.
Tabby’s consumer and SME financing activities in Saudi Arabia are subject to regulation by the Saudi Central Bank, while its payment and stored-value activities in the UAE fall under the regulatory framework of the Central Bank of the UAE.
The company’s latest funding, therefore, comes at a point when its business is becoming more complex, with growth increasingly dependent not only on customer acquisition but also on its ability to operate across multiple regulated financial services.
With $233 million in fresh capital and a $6.5 billion valuation, Tabby is now positioning itself for a larger role in the Gulf’s financial system. Its next stage of growth will depend on whether it can turn its large customer and merchant base into sustained demand for a broader range of financial products.
