Tabby is a leading shopping and financial services app operating in the Middle East and GCC.
The Company partners with merchants to originate short-dated consumer loans, typically with a three-month term in a region with modest credit card penetration (approximately 20% versus 70% in the US*). Tabby also offers consumers a “Tabby Card”, which extends the BNPL product to in-store purchases.
When a user pays with Tabby, merchants are paid for the goods upfront, less a merchant discount fee, with Tabby collecting installment payments directly from the end consumers. Merchants benefit from an increased conversion rate and increased basket size. Additionally, the Middle Eastern e-Commerce market traditionally operates on a cash-on-delivery basis, and Tabby’s solution brings significant advantages for merchants through fewer product returns from customers.
REGULATORY COMPLEXITY IN NEED OF A CREATIVE APPROACH TO GROW
The evolution of the BNPL category and the fintech industry was closely monitored by the UAE and Saudi governments with the goal of establishing regulatory frameworks for the new category of consumer credit. Tabby was still at an early stage of investing in growth, but had strong indicators of trajectory and market opportunity. It had established assets in its receivables that could serve as collateral for growth debt financing.
Raed, a leading VC firm in the Middle East region, made the initial introduction. PFG immediately understood the risks of a young company developing a new form of consumer credit in the market, but also saw numerous mitigants to the perceived risks.
Tabby‘s management team was led by entrepreneurs with demonstrated experience and knowledge of the sector; with direct experience leading a BNPL firm and the region’s largest e-Commerce company. In addition, PFG understood the asset class well, having analyzed the data from numerous BNPL companies and had already funded other BNPL companies in the sector globally.
THE BUILDING BLOCKS TO GROWTH
PFG created a structured facility, leveraging Tabby’s high-quality assets that more than met the standards for all parties involved. The funding had an advance rate against eligible receivables (excluding loans in arrears), secured over a book of performing loan receivables that were short-dated to provide significant diversification. The facility also included an equity subordination to ensure “skin in the game.”
The facility was used to fund a portion of the Company’s loan book, which released capital for Tabby to invest as it continued to grow its merchant network, product offerings, and end consumer base.
SCALING INTO A REGIONAL CATEGORY LEADER
Since PFG’s initial investment, Tabby has grown into a flagship fintech brand in the GCC, expanding its footprint across major markets and becoming a key part of the region’s digital-commerce infrastructure. The company has attracted backing from some of the world’s most respected global and regional investors, secured multiple rounds of follow-on financing, and continues to scale with a strong focus on credit quality and sustainable profitability.
Tabby’s trajectory reflects the power of combining disciplined lending practices with a deep understanding of local consumer behavior. Today, it stands as one of the most influential growth-stage fintech companies in the Middle East, and a clear example of how structured credit can accelerate scale, strengthen balance sheets, and support long-term category leadership.
No compensation was received by any individual or company for their views and thoughts expressed. The individuals or companies are not investment advisory clients of PFG.
