Dubai-based buy-now-pay-later Tabby received $150 million in debt financing from two US companies, one of the largest GCC FinTech start-up credit lines. 

The financing from New York-based Atalaya Capital Management and existing investor Partners for Growth (PFG) “fortifies Tabby's balance sheet and supports its continuous growth in transaction volumes and product expansion,” the business said on Wednesday.

Hosam Arab, CEO and co-founder of Tabby:

“Debt commitments from two reputable institutions [are] validation of our strong track record and business model. As we near profitability, we are in the fortunate position of not having to raise equity under the current market conditions.”

Since the COVID-19 outbreak, the BNPL business model, which lets customers buy online and pay in interest-free instalments, has grown. 

Tabby's platform launched in February 2020 and has struck deals with over 3,000 worldwide brands and small businesses, including H&M, Adidas, Nike, Ikea, Bloomingdale's, Marks & Spencer, Swarovski, and Toys R Us. Postpay, Cashew, Spotii, and Tamara compete with Tabby for Middle East BNPL market share.

Atalaya Capital managing director Justin Burns:

“Atalaya is excited to partner with Tabby in its mission to expand access to credit and payments in markets where there are limited existing options.”

After Tabby's series B investment round this year, BNPL platform has raised $275m. 

Sequoia Capital India and STV of Saudi Arabia invested $54m in March. Last year's extended investment round included Mubadala Investment Company, Arbor Ventures, and Global Founders Capital. 

Tabby reported tenfold revenue growth, eightfold active client growth, and threefold store partner growth in the first half of 2022 compared to the same period last year.