Tabby, a pioneer in the buy now, pay later (BNPL) space in the Middle East, has reached a significant milestone by securing $160 million in Series E funding, co-led by growth equity investor Blue Pool Capital and investment management firm Hassana Investment Company. This investment round values the company at $3.3 billion, more than doubling its previous valuation of $1.5 billion just 18 months ago.

The rapid growth of Tabby can be attributed to its successful expansion into new products and services, which have driven higher usage frequency among its customers. According to Tabby's founder and CEO, Hosam Arab, the company's profitability has grown significantly as its volumes have doubled. "Customers used to rely on us only for e-commerce or point-of-sale spending. Now, especially in the UAE, they see Tabby as a tool to manage all their spending, whether it's buying a cup of coffee or taking an Uber ride," Arab explained.

Originally focused on online transactions, Tabby has since expanded into in-store payments, retail, and financial services. Its Tabby Card allows users to spend flexibly, while Tabby Plus offers a subscription-based rewards program. Additionally, Tabby Shop provides longer-term payment plans to help users access better deals. The company now supports over 40,000 brands and merchants, including Amazon, Adidas, IKEA, Samsung, and Noon, and has grown its user base to 15 million customers across Saudi Arabia, the UAE, and Kuwait, a 50% increase since October 2023.

Tabby's ambitions extend beyond BNPL, as it plans to move into broader financial services, including digital accounts, payments, and money management tools. The company's acquisition of Tweeq, a Saudi-based digital wallet provider, last year marked a significant step in this direction. With Saudi Arabia and the UAE among the world's largest remittance markets, Tabby is also eyeing the remittance space, where it may initially target the UAE-India corridor, one of the busiest remittance routes globally.

Despite growing competition from regional players like Tamara and global companies like Revolut, Arab is confident that Tabby's scale, local market expertise, trusted brand, and deep customer relationships will give it a competitive edge. The company is also considering an initial public offering (IPO) on the Saudi Exchange, which could be its last private raise before going public.

Investor demand for tech IPOs in the MENA region is on the rise, with Talabat's massive listing in Dubai last year demonstrating the region's appetite for high-growth startups. Klarna's expected IPO in April could also serve as a bellwether for BNPL companies, signaling what's ahead for the sector. With three banks already hired to work on the deal, Tabby is poised to be the region's next major tech listing when the time is right.

As Tabby continues to scale its financial ecosystem, its success will be closely watched by investors, competitors, and regulators alike. With its sights set on becoming a leading financial services platform in the region, Tabby's growth and expansion plans are likely to have a significant impact on the fintech landscape in MENA.