(Bloomberg) – A Dubai-based buy-now, pay-ulter company has secured one of the largest loan facilities for a fintech startup in the Middle East and North Africa.
Highlighting the growing interest of international investors in the regional FinTech sector, Silicon Valley-based Partners for Growth will provide $ 50 million in debt financing to tabby to help it grow its business. The size of the facility could increase as the business grows over time, according to a statement.
“Tabby is one of the fastest growing companies in the MENA region and has an attractive market opportunity ahead,” said Max Penel, chief investment officer at PFG.
Just over six months after a funding round led by Mubadala Capital and Arbor Ventures of Hong Kong, tabby is among the thriving businesses as the pandemic accelerates the transition to online retail and digital payments. Buy-It-Now and Pay-On-Pay services allow customers to buy goods and then pay for them in installments or after a certain period without interest.
Saudi competitor Tamara recently raised $ 110 million in debt and equity financing from checkout.com as part of one of the region’s largest startup investments to date. Australian company Zip Co. Ltd. said last month that it was paying around $ 16 million to buy shares it did not already own in Spotii, another major player in buyout now and payout later in the UAE.
Read more: Checkout.com leads $ 110 million fundraising round for Saudi fintech Tamara
Tamara predicts that the global buy now and late payment industry could grow 400% to $ 680 billion in transaction volumes by 2025.
Co-founded in 2019 by Hosam Arab, previously CEO of online shopping site Namshi, tabby has raised more than $ 30 million in funding from local and global investors. More than 2,000 brands, including Ikea and Adidas, use it to enable customers to purchase their products, according to the company.
Read more: UAE Fintech Start-Up Raises $ 7 Million for Expansion
PFG, based in San Francisco, lends to emerging, growing companies. Founded in 2004 by the former owners and managers of the venture lending business of investment bank Hambrecht & Quist, the company has partnered with more than 200 growing companies around the world.
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