Tabby offers consumers the ability to pay for purchases using a tab on their smartphone, instead of carrying around a separate payment method. The firm has ambitions to become India’s leading buy now, pay later platform, and has thus far attracted significant investment from Sequoia Capital India and STV. With its existing user base of over 20 million registered users and growing rapidly, Tabby looks set to make an impact on the Indian consumer economy.
Tabby opens its first GCC investment with the help of PayPal Ventures, one of the world’s leading corporate venture arms. The funding will be used to support technology startups in the region, with a focus on Sectors such as e-commerce, mobile gaming and artificial intelligence.
Tabby is a Dubai-based company that provides a variety of consumer financial services, including mortgages, credit cards, and more. The funding will be used to expand the product line into a plethora of consumer financial services and support the company’s growing operations in Egypt.
Hosam Arab is confident that the Egyptian market is ripe for the adoption of Tabby, especially given the country’s underbanked status and lack of financial options for its citizens. He cites Egypt’s growing middle class as a major driver behind the platform’s potential expansion in Cairo and other big cities. Additionally, Arab believes that Tabby can tap into increasing demand from tourists in Egypt who are increasingly looking to spend their money online conveniently and without restrictions.
The success of the cost-free product in the Egyptian market could be due to a number of factors. First and foremost, the Egyptian consumer is used to purchasing goods and services in installments, which often comes with added costs such as interest or additional fees. Due to this background, coming up with an entirely cost-free product is novel and has sparked a lot of interest among potential customers. Beyond just this novelty factor, however, there are also economic challenges facing Egypt at present that could potentially limit how successful this expansion can be in the short term.
Unlike debit cards and credit cards, which pull money out of a checking account or lend money against future payments, BNPL pairs an account’s funds with an individual borrower’s loan repayment schedule. This allows for immediate spending (debit cards) or investment in something that will have a return in the near future (credit cards).
In developed countries where credit is traditionally accessed via credit cards, BNPL can be seen as a nice-to-have to top up borrowing limits. However, for developing markets where credit penetration is low or having a good credit history can be hard to come by, BNPL has more robust use cases such as being used for settling periodic bills like utility and telecom bills.
The CEO of Tabby Paint believes that although demand for the paint has decreased, the company is still growing as higher credit risk in some developed markets brings uncertainty to their bottom line. Although he predicts a slowdown overall for BNPL companies, Tabby Paint is hopeful that its proven track record and aggressive growth plans will ensure continued success.
Tabby is filling a gap in the market by providing credit products to consumers in MENA. This region has a lower credit penetration rate, meaning that there are fewer Credit cards available for use. Therefore, Tabby’s product offers an opportunity for those wishing to get approved for additional Credit cards and build their credit history.
Tabby has managed to go from a startup valued at just over $3 million to one valued at over $6 million in just eighteen months, cementing its place as one of the most highly valued companies in the MENA region. Committing relatively little capital in a subsequent round, this valuation reflects Tabby’s product relevance and ability to build a sustainable business in an increasingly competitive space. Upstarts such as Saudi-based Tamara and Egypt’s Sympl and Khazna are each commanding valuations around $5 million, but Tabby seems poised for even greater success.
Recent growth has PROVEN that Arab is here to stay, and its user base is only growing larger. The buy now, pay later platform continues to impress with its broad selection of brands and its ability to connect customers with the products they want at a price they can afford. With over 3 million active users across 10,000+ brands, it’s clear that Arab is the go-to choice for shoppers around the globe!
Tabby Cards is a fintech company that offers plastic cards to its customers. The company has rapidly increased in popularity, and now accounts for 10% of the company’s total volumes. This success is largely due to the card program’s in-store sales, which have grown by 5x over the past year. Overall revenues continue to increase, confirming that Tabby Cards continues to be a popular choice for consumers.
Tabby’s recent investments and innovations signal the continued growth of the company and its mission to improve access to financial services for underserved populations.
The chief executive of the FINRA firm commented on their plans to provide better financial services and products to consumers, specifically focusing on allowing customers to use FINRA as a one-stop-shop for their day-to-day spending. This move is seen as a valuable opportunity to deepen engagement with customers and help them transact more frequently.