Helping a BNPL solution become one of the most valuable startups in MENA

“PFG has been an early partner and believer in Tabby’s story and continues to do so today. We’re lucky to work with an ambitious team with deep expertise in the fintech space.”

- Hosam Arab, CEO and Co-founder at Tabby

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 three months 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. 


The evolution of the BNPL category and the fintech industry was closely monitored by the UAE and Saudi government with goals to establish regulatory frameworks for the new category of consumer credit.  Tabby was still at an early stage investing in growth but had strong indicators of trajectory and market opportunity. It had established assets in their receivables that could serve as the 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. 


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.


Tabby has grown considerably, 900% quarter-over-quarter growth in FY2022 compared to FY2021, while maintaining a quality asset book.  As a result, PFG has since provided funding multiple times and brought in new lenders to the structure to expand Tabby’s financing.

The company has raised over $70MM from investors such as Sequoia, STV, Arbor Ventures, Rocket Internet Capital Partners, Endeavor Catalyst, and Mubadala Ventures. It recently closed their Series C round joined by PayPal Ventures, bringing the value of the company to $660 million, making Tabby one of the most valuable startups in MENA and the first in the GCC to receive funding from their global corporate venture arm.

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.


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