Gulf Tabby Company Secures $150M Debt Funding – Statement

Band Hadeel Al Sayegh

DUBAI, August 3 (Reuters) – Gulf buy now, pay later (BNPL) Tabby said on Wednesday it had secured $150 million in debt financing from U.S. firms Atalaya Capital Management and Partners for Growth.

This is the largest credit facility ever secured by a fintech in the Gulf region, Tabby said in an emailed statement.

The company has raised $275 million in total capital so far, including a Series B extension earlier this year, he said.

Founded in 2019, Dubai-based Tabby partners with retailers to offer consumers, online and in-store, the ability to defer payment for purchases for up to 30 days or pay four equal monthly installments at no cost.

“The dynamics of the Middle East and North Africa markets make BNPL much more relevant to developed markets where players continue to face challenges,” Tabby said.

BNPL’s business model grew out of a very low interest rate environment that allowed BNPL’s businesses to raise funds at relatively low cost and offer point-of-sale loans to customers on online shopping sites.

Consumers pay for their purchases in installments over a period of weeks or months, usually without interest, and BNPL companies charge online retailers a fee for each transaction.

But the sector faces a toll as the circumstances that fueled its explosive growth come to an end, with consumers cutting back on spending and rising interest rates driving up BNPL companies’ funding costs, squeezing their margins.

(Reporting by Hadeel Al Sayegh; Editing by Jason Neely)

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