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A new Dubai-based FinTech firm that enables shoppers to defer payments on purchases has just secured a $7 million funding.
Tabby’s new funding round, led by Raed Ventures and with participation from MSA Capital and Arbor Ventures, will be used to fund the start-up’s growth and expansion into Saudi Arabia.
The company was launched in 2019 with an initial $2 million seed money by Hosan Arab, who previously started online retail site Namshi.
Its expansion is timely, Arab said, because its offering caters to consumers who may need a bit of flexibility when it comes to making purchases, particularly in the time of coronavirus pandemic.
The start-up helps offers buyers flexible payment solutions, or through a buy-now-pay-later scheme.
With its platform, online shoppers can buy products using only their mobile phone number and email address, no pre-registration or credit card is required. Customers can choose to settle their bills in multiple, interest-free installments, without even using their credit card.
Arab said their new funding will also give their merchant partners further security and assurance that Tabby is “sufficiently capitalized” to support their sales.
“We are very pleased to bring out best-in-market solution to Saudi Arabia at a time when consumers and merchants alike will be strapped for cash,” he said in a statement.
The start-up revealed it has also just secured an agreement with Apparel Group to offer its solution across the retailer’s entire online portfolio, which includes brands like 6th Street, Tommy Hilfiger and Aldo.
“Given the prevalence of cash on delivery in our market and the complexity it presents to our operations, we were keen to partner with Tabby to provide our customers with a simple alternative to COD (cash on delivery) that takes the hassle out of the process yet keeps our customers happy,” said Dharmin Ved, CEO of 6th Street.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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