UAE-based Tabby, a buy now, pay later fintech startup, has raised $7 million. It will use the funds to grow and launch its services in Saudi Arabia. The round was led by Raed Ventures with participation from MSA Capital and existing investor Arbor Ventures. 

Hosam Arab launched Tabby in 2019. Previously, Arab was co-founder and CEO of Namshi, the online retail site. Tabby helps customers better manage their spending. It enables them to split their purchases into multiple, zero-interest installments while shopping at their favorite retail stores. The platform also helps retailers boost sales through flexible payment options.

“We are very pleased to bring our best-in-market solution to Saudi Arabia at a time when consumers and merchants alike will be strapped for cash. This funding will give our merchant partners further security and assurance that we are sufficiently capitalized to support their sales.”

Hossam Arab, Co-founder & CEO, Tabby

E-commerce is rapidly growing due to Covid-19. Consumers are shifting their purchase behavior to do more of their shopping online. However, the pandemic is predicted to continue having a negative impact on businesses and consumers in the months to come. Arab says, “We are very pleased to bring our best-in-market solution to Saudi Arabia at a time when consumers and merchants alike will be strapped for cash. This funding will give our merchant partners further security and assurance that we are sufficiently capitalized to support their sales.”

The startup signed an agreement with Apparel Group, one of the largest retail groups in the region. Apparel Group will offer Tabby’s solution on its platform 6thStreet and the rest of its online portfolio including Tommy Hilfiger and Aldo’s shopping portals in Saudi Arabia.

The startup had raised $2 million in a seed round just seven months ago in a round led by Berlin-based Global Founders Capital.