The UAE-based fintech startup, Tabby on Monday raised $2 million in a seed round led by Global Founders Capital with Wamda and Arbor Ventures as backers.
Founded by Hosam Arab, Tabby deploys proprietary technology to add value to MENA (Middle East & North Africa) region’s fintech landscape, primarily UAE and Saudi Arabia. The platform offers various avenues for users to sell and purchase products digitally such as ‘buy now’, ‘pay later’ and ‘EMI’ options.
As said by Arab, the company will utilise the funding to augment its proprietary technology, expand its merchant network and hire talent across multiple geographies.
According to Wamda, Tabby is currently integrating its technology solution with a number of large retail merchants in the region and will be available on the checkout pages of e-commerce stores along with other traditional payment options.
Statements enclosing the deal
“We’re excited to be launching a Buy Now Pay Later business that provides great value to consumers, retailers and financial institutions while addressing the government’s goals of growing non-cash transactions in their economies,”
– Hosam Arab, CEO, Tabby
“Tabby customers will be able to better manage their spending by making purchases at their convenience and paying for them when they have the funds available while retailers will benefit from being able to sell more to their customers, and gain access to a larger customer base,”
“Wamda is excited to be partnering with one of the region’s most successful entrepreneurs. This is a continuation of our thesis to back great founders building products addressing clear and demonstrable market pain points,”
– Fadi Ghandour, executive chairman, Wamda
E-commerce growth in MENA
According to The UAE eCommerce Landscape whitepaper published by VISA back in June, MENA is the fastest-growing region in terms of e-commerce transactions globally, where UAE stands as the powerhouse accounting for an average of $144 per transaction, even though the majority of online shoppers prefer COD option.
With the avenues brought forward by fintech startups like Tabby, the risks involved with COD options such as package returns and cancellations will be suppressed in the near future in UAE and the rest of the MENA region. This also unlocks opportunities for online sellers to grow revenues and transaction sizes as a direct result out of the convenient payment options.
ⓘ Image source: Tabby