The funding will help Tabby expand its product portfolio and global presence. Here are the top-line bullets you need to know.
Tabby, a buy now, pay later (BNPL) platform, has raised $54M in an extended Series B. The round drew participation from Arbor Ventures, Global Founders Capital, Mubadala Capital, STV, and Sequoia Capital India.
HOW’S THE COMPANY PERFORMING?
- UAE-based Tabby allows shoppers to pay for goods in interest-free installments.
- In 2021, the company’s transaction volume grew 50x year-over-year.
- It has 1M monthly active users and over 3K brands on its portal, including IKEA, Marks & Spencer, SHEIN, Bloomingdale, and Adidas.
- The startup has offices in the United Arab Emirates, Saudi Arabia, Kuwait, and Bahrain.
WHY DOES THE MARKET MATTER?
- The global digital lending platform market is expected to reach a value of $27.1B by 2028, growing at a CAGR of 18.13%, according to Verified Market Research.
- Today, BNPL accounts for a small portion of the overall annual spending on payment cards (including credit, debit, and prepaid cards) — which currently sits around $8T. However, BNPL is at an inflection point. By 2025, the global BNPL industry is expected to grow 10–15x its current volume, topping $1T in annual gross merchandise volume by some estimates. This growth trajectory has incumbents paying close attention and increasing their efforts to improve the digital user experience.
- There have been major acquisitions in this space as well, such as Square acquiring AfterPay for $29B.
- BNPL adoption is increasing rapidly in Gulf Cooperation Council (GCC) countries — in fact, the area has seen one of the fastest rates of consumer adoption, with 24% of its consumers using the option in 2021, according to Tabby.