Tabby, a leading Buy Now, Pay Later (BNPL) fintech in the MENA region, is making bold moves toward an initial public offering (IPO). The UAE-based company has reportedly hired HSBC, JPMorgan, and Morgan Stanley to manage the listing, with Saudi Arabia as the likely IPO destination in late 2025 or 2026.
This announcement follows Tabby’s recent $160 million Series E funding round, which doubled its valuation to $3.3 billion, making it the most valuable fintech in MENA.
Strategic Growth and Acquisitions
Tabby’s path to IPO has been fueled by significant investments and strategic acquisitions:
- December 2023: Raised $700 million in debt financing from JPMorgan and extended its Series D round to $250 million.
- Tweeq Acquisition (2024): Acquired Saudi digital wallet Tweeq, expanding its services to include digital spending accounts and financial management tools.
- Regulatory Milestone: Received its BNPL permit from the Saudi Arabian Monetary Authority (SAMA) in July 2023, strengthening its position in Saudi Arabia’s fintech market.
Tabby’s Expanding Influence in MENA
The fintech company has experienced rapid growth, now serving:
- 15 million registered users (up from 14 million).
- 40,000+ brands and small businesses, including Amazon, Adidas, IKEA, Samsung, and Noon.
- $10 billion in annualized transaction volume, showcasing its financial strength and user trust.
Investor Confidence and Market Positioning
Tabby’s strong financial backing and strategic expansion have drawn global investor interest:
- Blue Pool Capital and Hassana Investment Company led the $160 million Series E round.
- Saudi-based STV and Wellington Management also participated, reinforcing Tabby’s regional dominance.
Investor confidence remains high, with Christopher Wu, CIO at Blue Pool Capital, stating:
“Tabby’s ability to innovate and deliver exceptional products is truly impressive. Their strong revenue growth and operational efficiency set them apart from other fintech companies globally.”
IPO Readiness and Market Competition
Tabby’s IPO ambitions align with a rising demand for fintech listings in the MENA region:
- IPO plans remain on track, with CEO Hosam Arab confirming:
“Our plans for an IPO remain unchanged. We’re fairly serious about it, and unless markets shift significantly, we’re unlikely to raise another private round.”
- Klarna’s expected IPO in April 2025 could serve as a benchmark for BNPL companies, indicating market appetite for fintech stocks.
- Tabby faces regional competition from Coatue-backed Tamara and potential global competition from Revolut, which recently announced plans to enter the UAE’s $44 billion remittance market.
Beyond BNPL: The Future of Tabby
Tabby’s vision extends beyond BNPL, focusing on:
- Expanding its financial ecosystem with digital accounts, payments, and money management tools.
- Exploring remittances, particularly targeting high-volume corridors like UAE-India.
- Driving Saudi Arabia’s Vision 2030 by supporting the country’s shift toward a cashless economy.
With a $3.3 billion valuation, 15 million users, and a strong investor base, Tabby is positioning itself as MENA’s next major fintech IPO. Its strategic acquisitions, rapid growth, and expanding financial services make it a key player in the region’s digital finance evolution.
As the IPO date approaches, investors, analysts, and competitors will closely monitor Tabby’s market moves and innovations in the evolving fintech space.
