The buy now, pay later start-up Tabby has become the Gulf’s first fintech unicorn as it raised $200 million in a new fundraising that values the company at more than $1.5 billion.

The Series D funding round is led by Wellington Management, with additional participation from growth equity investor Bluepool Capital, in addition to existing investors STV, Mubadala Investment Capital, PayPal Ventures and Arbor Ventures.

The platform, that was founded in 2019 in the UAE and later moved to Saudi Arabia, will use the fresh capital to continue financing consumers and retailers.

The equity financing was raised ahead of the fintech company’s planned initial public offering (IPO) in Saudi Arabia.

Tabby has more than $6 billion in annualised transaction volume and works with more than 30,000 brands. The number of users on the platform has reached 10 million.

It recently rolled out Tabby Shop, which features more than half a million goods from thousands of brands, helping shoppers discover and track the best products and deals in one place.

Last May, the company upsized its debt facility to $350 million following a fundraise led by San Francisco-based Partners for Growth (PFG), along with Atalaya Capital Management and CoVenture.

(Writing by Cleofe Maceda; editing by Seban Scaria)