ABU DHABI (ALETIHAD)

Financial technology company Tabby has raised $233 million in a new equity funding round that values the company at $6.5 billion, as it seeks to expand its financial services business in the UAE and Saudi Arabia.

The round was led by existing investor Blue Pool Capital, with participation from existing shareholders HSG, Wellington Management and Arbor Ventures, Tabby said in a statement.

The company said the new capital would support its next phase of growth as it expands beyond its buy now, pay later business into broader financial services in the UAE and Saudi Arabia.

Tabby, which has been profitable since 2023, currently processes more than $18 billion in annualised transaction volume. It has 25 million registered users and works with 70,000 business partners, according to the statement.

The funding round also includes a liquidity option for employees. Tabby said it has conducted share tenders since 2023 and facilitated more than $100 million in share sales, allowing current and former employees to realise part of the value of their holdings.

In the UAE, Tabby has secured a Stored Value Facilities licence from the Central Bank of the UAE to launch Tabby Cash, which the company describes as an alternative to a debit account with no account or card fees.

Tabby Cash allows customers to earn cashback on card spending and make local and international money transfers, the statement said.

In Saudi Arabia, the company has received consumer and SME finance licences from the Saudi Central Bank, enabling it to offer larger and longer-term financing to consumers as well as working capital to businesses. It has also acquired Tweeq, a Saudi Central Bank-licensed digital wallet, extending its services into accounts, cards and transfers.

Hosam Arab, CEO and Co-Founder of Tabby, said the company had started with an online checkout option designed to allow consumers to spread payments over time.

“Everything since, every product and every licence, has come back to the same idea: people deserve more from their money,” Arab said. “This round means we can build further on that, without changing how we think about growth or discipline.”

Christopher Wu, Chief Investment Officer at Blue Pool Capital, said Tabby had expanded beyond payments to become a platform for customers managing and spending their money across the region.

“We are proud of our partnership with Tabby over the past three years, and we are excited to continue supporting the impressive growth of the company with this financing,” Wu said.

The transaction remains subject to applicable regulatory approvals, including approval from the Saudi Central Bank.