Tabby was valued at $4.5 billion in an October 2025 secondary sale, up from $3.3 billion following its $160 million Series E in February 2025. The round was led by Blue Pool Capital and Hassana Investment Company, with participation from Wellington Management.

In November 2023, a $200 million Series D valued the company at $1.5 billion. Earlier funding rounds include a $58 million Series C in January 2023 led by Sequoia Capital India and STV, with PayPal Ventures participating. Tabby raised a $50 million Series B in July 2021, followed by a $54 million Series B extension in March 2022.

The company's early funding included a $23 million Series A in December 2020 and a $7 million seed round in June 2020. Debt facilities include a $350 million credit line and a $700 million receivables securitization from J.P. Morgan.

Total funding raised exceeds $1.65 billion when including both equity rounds of approximately $602 million and debt facilities of over $1 billion.

Tabby is a shopping and payments app that started with buy-now-pay-later services and now includes additional payments and shopping features. The core pay-later product allows shoppers to split purchases into four interest-free installments, paying 25% upfront and the remainder over three months.

For online purchases, customers log in through Tabby's checkout widget, link a debit or credit card, and receive instant approval based on the company's real-time risk assessment. The platform automatically collects payments and sends reminders through the mobile app.

The Tabby Card is a digital Visa card that works anywhere contactless payments are accepted. Users receive an interest-free spending line up to $2,700 and can either pay the full statement within 40 days or split specific purchases into installments retroactively.

Tabby+ subscription service costs $13 monthly and enables using pay-in-4 anywhere the Tabby Card is accepted, plus 1% cashback rewards. The app includes Tabby Shop, a product discovery platform with price comparisons and merchant coupons, and Tabby Care, which provides buyer protection by freezing payments when orders are delayed or faulty.

The platform integrates with e-commerce systems like Shopify and WooCommerce, while physical stores can process Tabby payments through QR codes or SMS payment links.

Tabby runs a B2C fintech model that monetizes via merchant fees and customer engagement across multiple touchpoints. The primary revenue stream is charging merchants approximately 3-4% per transaction when customers use Tabby's pay-later services.

The business model sets up a three-way exchange where merchants target higher conversion rates and larger basket sizes, customers access interest-free credit, and Tabby captures transaction fees. Unlike traditional credit products, Tabby's installment payments are interest-free when paid on time, with revenue coming from merchants rather than consumer interest charges.

Tabby's risk management relies on real-time underwriting using open banking data and traditional credit bureau information. Proprietary algorithms assess creditworthiness at checkout, enabling immediate approval decisions while managing default risk.

The platform's expansion beyond pure BNPL into a digital wallet and subscription services adds revenue streams and broadens customer touchpoints. The Tabby Card uses Visa's network infrastructure, allowing the company to monetize transactions at any point-of-sale terminal without requiring direct merchant integrations.

Customer acquisition costs are managed through the checkout experience and the discovery features within the Tabby app, which drive repeat usage and merchant partnerships.

Tamara is Tabby's primary regional competitor, having secured Saudi Arabia's first consumer finance license from SAMA in March 2025. The company raised a $340 million Series C at a $1 billion valuation and is building a full-stack financial services platform including deposit accounts and debit cards.

With the Saudi license, Tamara gains access to traditional banking services and can engage merchants that require licensed counterparties. The company faces higher capital requirements as it moves into deposit-taking and lending activities beyond simple BNPL transactions.

valU operates from Egypt under a fintech license and offers longer-term financing up to 60 months, targeting higher-ticket purchases. The company has expanded to Jordan and targets cross-border growth, though it remains concentrated in Egypt's challenging economic environment.

Cashew secured a $10 million strategic investment from Mashreq Bank and uses the bank's balance sheet for longer-term financing in travel and healthcare verticals. The partnership provides access to over 60,000 merchants through NEOPAY's acquiring network across the UAE and Saudi Arabia.

Postpay has established a debt facility with Commercial Bank of Dubai and offers a white-label BNPL solution for enterprise merchants. The company's reliance on a single banking partner creates both cost advantages and concentration risk.

These bank-backed competitors benefit from lower funding costs and regulatory relationships but typically move slower on product innovation and technology development compared to pure fintech players.

Traditional payment networks are embedding installment features directly into their infrastructure, potentially commoditizing BNPL services. Visa's Installment Solution allows any merchant to offer split payments without partnering with dedicated BNPL providers.

PayPal, Apple Pay, and Samsung Pay are integrating buy-now-pay-later functionality into their existing wallet ecosystems, leveraging large user bases and merchant relationships. These platforms can offer BNPL as a feature rather than a standalone product, potentially pressuring specialized providers on pricing and merchant adoption.

The Tabby Card extends the company's addressable market beyond its merchant network to include everyday spending like fuel, groceries, and utilities. The virtual Visa card with up to $2,700 in interest-free credit competes directly with traditional credit cards across the Gulf region's trillion-dollar annual card spending.

Tabby+ subscription service converts occasional BNPL users into recurring revenue customers while enabling pay-in-4 functionality anywhere Visa is accepted. The cashback rewards program is intended to increase engagement and compete with loyalty-focused credit products.

The acquisition of digital wallet Tweeq in September 2024 enables peer-to-peer transfers, salary disbursement, and stored-value accounts. This infrastructure supports a broader financial services strategy to capture more of customers' financial activity beyond purchase financing.

Payment orchestration partnerships with Checkout.com, PayTabs, and MoneyHash integrate Tabby into thousands of mid-market merchants through single API connections. This approach reduces sales cycles and opens access to the long tail of regional e-commerce without direct merchant acquisition costs.

The Tabby Card's acceptance at any Visa terminal makes every point-of-sale location a potential Tabby transaction. This expansion captures offline retail spending while producing more transaction data for improved underwriting and personalization.

Tabby Shop's product discovery platform with price comparisons and merchant coupons creates a shopping destination that can drive incremental transaction volume and deeper customer engagement beyond checkout-focused interactions.

Saudi Arabia's new BNPL licensing framework creates regulatory clarity and high barriers to entry for well-capitalized incumbents. With proper licensing and the required minimum capital, Tabby can expand into Bahrain and Qatar while potentially re-entering Egypt's 110 million-person market when economic conditions stabilize.

The company's profitability and $3.3 billion valuation create conditions for a potential public listing on Tadawul, providing acquisition currency for regional consolidation opportunities. Smaller licensed wallets or remittance providers could accelerate cross-border payments and salary-linked BNPL services.

B2B BNPL represents an opportunity where Tabby could extend split-payment functionality to SME procurement, inventory financing, and SaaS subscriptions using existing risk management infrastructure.

Regulatory tightening: Saudi Arabia's SAMA and the UAE's CBUAE are implementing stricter licensing requirements for BNPL providers, with minimum capital thresholds and operational standards that may favor established players and raise compliance costs. Changes to consumer protection regulations or interest rate policies could impact the unit economics of interest-free installment products.

Credit cycle exposure: Tabby's business model depends on maintaining low default rates while expanding credit access to younger demographics with limited credit histories. Economic downturns or rising unemployment in the Gulf region could increase charge-offs and require tighter underwriting, reducing approval rates and transaction volume.

Network commoditization: Payment networks like Visa and major wallet providers are embedding installment features directly into their infrastructure, reducing differentiation for dedicated BNPL providers. If merchants can offer split payments through existing payment terminals without additional partnerships, Tabby's merchant fees and competitive positioning could come under pressure.