How Tabby Became MENA’s Most Valuable Fintech and What’s Next
A Record-Breaking Valuation
Tabby’s rapid ascent in the fintech sector has garnered significant investor interest, redefining financial services in the Middle East and North Africa (MENA). Founded in 2019, the company recently raised $160 million in a Series E funding round, bringing its valuation to an impressive $3.3 billion. By leveraging its innovative “Buy Now, Pay Later” (BNPL) model, Tabby has reshaped consumer spending habits and cemented itself as the most valuable fintech company in the region.
Expanding Beyond BNPL
Since its last funding round in October 2023, Tabby has nearly doubled its annualized transaction volume, surpassing $10 billion while maintaining profitability. Operating in key markets such as the UAE, Saudi Arabia, and Kuwait, the company has capitalized on the region’s accelerating shift toward digital payments, supported by evolving regulatory frameworks.
With the growing demand for flexible financial solutions, Tabby is expanding beyond BNPL. Its latest funding will accelerate the development of digital spending accounts, integrated payment solutions, and advanced money management tools. The company is also preparing for an initial public offering (IPO) within the next 18 months, marking a major step toward scaling its global presence.
The Investment Landscape
The MENA region has become a focal point for fintech investment, attracting substantial backing from both global and regional investors. The rapid adoption of cashless transactions, regulatory advancements, and digital financial services has fueled this growth. Investors are not only injecting capital but also fostering strategic partnerships and offering technological expertise to fintech firms.
Key investors shaping the fintech boom in MENA include:
- Sequoia Capital: A global venture capital firm with significant investments in high-growth fintech startups, actively backing firms in MENA.
- Mubadala: Abu Dhabi’s sovereign wealth fund, strategically investing in fintech innovation and financial technology startups.
- SoftBank: A major player in global fintech, supporting digital finance initiatives across the region.
- ADQ: A UAE-based investment firm heavily investing in fintech to drive regional digital transformation.
- Saudi Public Investment Fund (PIF): A key driver of fintech innovation, funding startups that enhance financial accessibility in Saudi Arabia and beyond.
Governments are also playing a pivotal role in supporting fintech expansion through regulatory frameworks and investment incentives, ensuring the sector’s long-term sustainability and growth.
Rising Competition in MENA’s Fintech Sector
As the fintech ecosystem in MENA matures, competition is intensifying. While BNPL services remain dominant, other segments such as digital banking, cryptocurrency exchanges, and enterprise payment solutions are rapidly growing. Fintech firms are differentiating themselves by incorporating artificial intelligence, blockchain technology, and seamless customer experiences to cater to evolving consumer needs.
Notable emerging fintech firms in MENA include:
- Tamara (Saudi Arabia): A BNPL provider that raised $110 million in 2021 and continues to expand across the Gulf region.
- Paymob (Egypt): A digital payments firm that secured $50 million in Series B funding in 2022 to enhance its infrastructure.
- YAP (UAE): A digital banking platform that raised $41 million in 2022, focusing on financial inclusion and seamless banking solutions.
- HyperPay (Saudi Arabia): A fast-growing online payments company catering to businesses and e-commerce platforms.
- Rain (Bahrain): A licensed cryptocurrency exchange expanding its services across the region.
- PostPay (UAE): A BNPL service provider collaborating with retailers to offer flexible payment solutions.
This increasing competition, coupled with institutional backing, signals a rapidly evolving fintech landscape set to redefine financial accessibility and digital innovation in MENA.
As investor interest in fintech remains strong, Tabby’s anticipated IPO could serve as a benchmark for other regional players looking to scale. With the right mix of strategic partnerships and cutting-edge financial technology, the company is well-positioned to shape the future of digital finance in MENA and beyond.
