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Mubadala-Backed Tabby Raises $200 Million In Funds
The latest series D funding round gives the BNPL platform a value of $1.5 billion.
Backed by UAE investment company Mubadala, Dubai-based Buy Now Pay Later platform Tabby has raised $200 million in funding, making it part of an elite group of MENA companies known as “unicorns” due to their market value of $1 billion or more.
Tabby, now valued at a staggering $1.5 billion, joins fellow UAE startups like Careem, Kitopi, and Swvl, along with Saudi Arabia’s STC Pay and Egypt’s Fawry.
اليوم، نعلن أن تابي أصبحت أول شركة ملياريّة في قطاع التقنية المالية في المنطقة، بعد أن أغلقت جولة استثمارية Series D بقيمة 200 مليون دولار وبتقييم 1.5 مليار دولار. كل الشكر لمجتمع تابي من المتسوّقين والشركاء على دعمهم المستمر. pic.twitter.com/YnuJdembCy
— Tabby | تابي (@paywithtabby) November 1, 2023
US-based Wellington Management was in charge of the latest funding round, with Hong Kong’s Blue Pool Capital and Abu Dhabi’s Mubadala Investment Capital also taking part, with additional investment also coming from Saudi Arabia’s STV, PayPal Ventures and Arbor Ventures.
Tabby manages more than $6 billion worth of yearly transactions, and the new funding will be used to further develop the company’s financial and shopping services for both consumers and retailers.
“With this investment, we can advance our mission across Saudi Arabia and the UAE,” said Hosam Arab, CEO and co-founder of Tabby.
Also Read: MENA Online Electronics Sales Grew By 7% In 2023
The BNPL business model, which allows shoppers to spread payments for online purchases over several interest-free installments, has boomed since the COVID-19 pandemic and is projected to hit $565.8 billion by 2026, representing a compound annual growth rate of nearly 26%.
Tabby is currently active in Saudi Arabia, Kuwait, and the UAE. In a January 2023 funding round, the company had already raised $58 million, valuing the BNPL provider at $660 million.
Meanwhile, plenty more BNPL providers are jostling for a share of the enormous MENA market, including the likes of Postpay, Cashew, Spotii, and Tamara. Only time will tell if Tabby’s rivals are also able to achieve coveted unicorn status, though the MENA region is expected to produce at least 45 billion-dollar startups by the end of the decade, led by Saudi Arabia.
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Lebanon Ministers Meet Visa Over National Digital Payment Platform
Finance and technology ministers say a comparative study and roadmap will follow before any decision on adopting a model.
Lebanon’s finance and technology ministers met representatives from Visa last week to discuss a proposed unified national digital payment platform for government services, according to a readout from the Ministry of Finance.
The meeting brought together Finance Minister Yassin Jaber, Minister of State for Technology and Artificial Intelligence Kamal Shehadeh, a Visa delegation, and experts from both ministries. Discussion focused on whether Lebanon could establish a single platform through which citizens and institutions would pay taxes, fees, fines and other official transactions electronically, using mobile phones and other digital channels.
The Visa delegation presented examples from countries that have adopted unified government payment platforms, including the United Arab Emirates, Singapore, Estonia and Jordan. According to the readout, the examples were presented as having increased collection rates and expanded financial inclusion.
Talks covered settlement mechanisms, direct transfer to the treasury account, financial reconciliation, risk management, cybersecurity, fees, and an operational model that would involve the private sector. The parties agreed to continue technical and institutional consultations, prepare a comparative study, and develop an implementation roadmap before any decision on adopting a model for Lebanon.
Jaber said the Ministry of Finance had already enabled citizens to pay using credit cards and e-wallets through transfer companies, but described the proposed platform as a further step. He framed the development of electronic payment and collection systems as a priority within the ministry’s modernization plan.
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Shehadeh outlined the citizen-facing concept as a single mobile application through which users could settle obligations to ministries, government institutions and other bodies.
“The idea, in short, is that any citizen downloads an application on their mobile phone, through which they can pay all service obligations for all ministries, government institutions, or those owned by the Lebanese state, and others as well, as the platform is not limited only to state institutions,” he said.
Shehadeh added that the platform would not displace banks and money transfer companies that currently provide collection services to the state, calling it complementary to their work.
