Dubai-based buy now, pay later (BNPL) company Tabby has announced a $150 million credit facility with Atalaya Capital Management and existing investor Partners for Growth (PFG), which it says will fortify its balance sheet and support sustained transaction volume growth.

The facility is New York-headquartered Atalaya’s first deal in the Middle East and North Africa (MENA) region and is the largest credit facility ever secured by a fintech in the GCC, the company said in a statement on Wednesday.

The new funding takes Tabby’s total capital raised to date to $275 million, following a Series B extension earlier this year. Co-founder and CEO Hosam Arab said the company is "nearing profitability".

“Debt commitments from two reputable institutions is validation of our strong track record and business model," he said.

“As we near profitability, we’re in the fortunate position of not having to raise equity under the current market conditions and, as such, are thrilled to partner with the like-minded people at PFG and Atalaya.”

In recent months, Tabby’s BNPL facilities have become available for customers of international brands including H&M, Bath & Body Works, Nike and Swarovski.

The app allows buyers to split a payment for their shopping into four payments at the store checkout. In May, the company launched the Tabby Card which allows the same facility.

(Reporting by Imogen Lillywhite; editing by Cleofe Maceda)