Tabby, a UAE-based buy now, pay later (BNPL) player, has reportedly hired banks to prepare for an eventual initial public offering (IPO).
The company is said to be in talks with HSBC, JPMorgan, and Morgan Stanley for a public offering in Saudi Arabia, potentially in late 2025 or 2026.
This development follows a significant financing round in December 2023, where Tabby secured $700 million in debt financing from JPMorgan and extended its series D round to $250 million.
The company has also recently acquired Saudi digital wallet Tweeq, expanding its product suite to offer customers spending accounts with money management tools.
Tweeq, founded in 2020, is one of the early electronic money institutions licensed to operate in Saudi Arabia, providing an alternative to traditional banking accounts.
This acquisition marks a significant milestone for Tabby, as it seeks to diversify its offerings and strengthen its presence in the Saudi market.
Tabby graduated from the Saudi Arabian Monetary Authority (SAMA) regulatory sandbox and received its BNPL permit in July 2023.
The company, valued at $1.5 billion, now claims 14 million users and relationships with over 40,000 global brands and small businesses.
In preparation for its eventual IPO, Tabby’s decision to hire banks demonstrates its commitment to expanding its investor base and increasing its visibility in the public markets.
The company’s growth trajectory, coupled with its strategic acquisitions and expanding product suite, positions it for potential success in the public markets.
However, it is essential to consider the various challenges and risks associated with an IPO, including regulatory compliance, potential market volatility, and investor expectations.
As Tabby navigates this process, it will be vital to keep track of the company’s progress and the impact of its IPO on the BNPL industry as a whole.
Tabby’s preparations for an eventual IPO mark a significant milestone for the company, demonstrating its commitment to growth, expansion, and increased transparency.
As the BNPL sector continues to serve more customers, Tabby‘s strategic decisions and growth trajectory will be closely monitored by investors, analysts, and industry stakeholders.
As covered last year, Tabby, the MENA’s shopping and financial services app, has announced it has entered into a definitive agreement to acquire Tweeq, a Saudi-based digital wallet licensed by the Saudi Central Bank (SAMA), during 24 Fintech, Saudi’s flagship fintech event.
Tweeq will continue to operate independently, and “through future opportunities, Tabby could explore expanding its financial products suite to include digital spending accounts, cards, and money management tools in accordance with laws and regulations.”
Tweeq, founded in 2020, is one of the early electronic money institutions “licensed to operate in Saudi Arabia, providing an alternative to traditional banking accounts.”