Riyadh-based BNPL startup Tabby raised a $160M Series E led by Blue Pool Capital at a $3.3B valuation; CEO Hosam Arab is looking at an IPO in the next 18 months
Context & Ripple Effects
Tabby’s $3.3B valuation follows its $200M Series D at a $1.5B valuation in 2023, when the company said it was profitable in the Gulf. Earlier financing also included $150M in debt funding, showing that its expansion has drawn both equity and credit capital.
The new round raises the stakes for an eventual public-market process: it provides a fresh private valuation and a named lead investor while the proposed IPO remains an ambition rather than a confirmed transaction.
First-order effects
- Tabby gains $160M of new equity capital and a $3.3B valuation benchmark, strengthening its financial position as it considers an IPO.
- Blue Pool Capital becomes the lead investor in this financing, while existing shareholders receive a clearer reference point for Tabby’s private-market value.
Second-order effects
- Tabby’s higher valuation increases pressure on other regional BNPL providers to demonstrate comparable growth, funding access, or profitability; Tamara had previously raised a $340M Series C at a $1B valuation.
- A credible IPO pathway can make late-stage equity and debt providers more attentive to Tabby’s execution, because public-market readiness becomes a more important financing consideration.
Third-order effects
- If more mature Gulf fintechs pair profitability claims with large late-stage rounds, regional capital markets may become a more viable exit route rather than private funding’s endpoint.
- The pattern could concentrate BNPL market power among providers able to secure both equity and lending capacity, though an IPO outcome remains uncertain until Tabby formally proceeds.
The trend: Gulf fintech leaders are moving from venture-backed expansion toward valuation-setting late-stage financings and potential public-market exits.