Tabby: 10 Key Things You Must Know

Overview

Tabby is a rapidly growing fintech company specializing in Buy Now, Pay Later (BNPL) services, headquartered in Riyadh with significant operations across the Middle East and North Africa (MENA) region. Founded in 2019 by Hosam Arab and Daniil Barkalov, Tabby offers shoppers flexible payment options such as splitting purchases into four interest-free payments or longer monthly installments. This Shariah-compliant payment platform has surged in popularity by addressing the unique economic and cultural needs of the Gulf Cooperation Council (GCC) markets, making it a key player in reshaping retail payment systems. The article explores Tabby’s origins, products, market impact, leaders, competition, challenges, and future outlook.

1. Founding and Background of Tabby

Tabby was co-founded in 2019 by Hosam Arab, a seasoned entrepreneur known for co-founding Namshi, a major online fashion retailer, and technologist Daniil Barkalov. The startup emerged to tackle issues in the regional payment landscape, particularly the limited access to credit and resistance to interest-based loans due to cultural norms and Shariah compliance. By offering a flexible, interest-free BNPL solution tailored to GCC consumers, Tabby met a growing demand for ethical and accessible financing options. Initially launched in Dubai, Tabby later moved its headquarters to Riyadh to better serve the Saudi market and capitalize on the Kingdom's Vision 2030 goals.

2. Core Services and Product Features

At its heart, Tabby’s BNPL platform allows customers to purchase goods and services and settle payments over four equal, interest-free installments. The first payment is made at purchase, while the remainder are auto-deducted on a biweekly or monthly schedule. The platform extends beyond e-commerce to in-store purchases through the Tabby Card, a virtual Visa card that enables flexible payments at any Visa-accepting retailer. Tabby also offers subscription plans through Tabby Plus, providing enhanced payment limits and exclusive deals. The Tabby Shop feature streamlines product discovery and deal tracking, while Tabby Care offers buyer protection—ensuring refunds or payment holds if issues arise with purchases.

3. Market Presence and Growth Metrics

Tabby’s footprint covers Saudi Arabia, the UAE, and Kuwait, serving over 15 million users by 2025 and partnering with more than 40,000 retail merchants, including major brands like Adidas, IKEA, SHEIN, and Amazon. Annualized transaction volume has surged beyond $10 billion, reflecting the platform’s rapid adoption and the expanding BNPL market in the region. The Gulf BNPL sector is expected to grow substantially, driven by young, tech-savvy consumers and increasing online retail penetration. Tabby’s growth has been propelled by its ethical finance positioning and by addressing the underbanked population’s need for flexible financing.

4. Leadership: Hosam Arab and the Executive Team

Hosam Arab, Tabby's CEO and co-founder, plays a pivotal role in shaping the company’s strategy and growth trajectory. With a background in electrical engineering from Queen's University and an MBA from INSEAD, Arab brings deep expertise spanning technology, e-commerce, and finance. Before Tabby, he co-founded Namshi, which became a leading fashion e-commerce platform in the Middle East. Daniil Barkalov, COO and co-founder, complements this leadership with experience scaling tech platforms, notably from his tenure at ride-hailing giant Careem. Their combined insights have driven Tabby’s rapid expansion and innovation in the regional fintech ecosystem.

5. Business Model and Revenue Streams

Tabby operates on a merchant-focused revenue model, where retailers pay commission fees on transactions conducted through the platform. Customers enjoy free use of the service if payments are timely, reinforcing trust and adoption. Additionally, revenue is generated from the premium Tabby Plus subscription, which offers customers higher spending limits and exclusive benefits. Fees also derive from virtual card transactions using the Tabby Card. Despite previously charging late fees, Tabby has removed these in Saudi Arabia to ensure complete Shariah compliance, differentiating itself ethically from many BNPL competitors.

6. Technological Infrastructure and AI Investments

Underpinning Tabby’s growth is significant investment in advanced technologies, including AI and machine learning, to enhance credit risk assessment, fraud detection, and personalized shopping experiences. As reported in 2025, Tabby has deployed NVIDIA HGX systems to locally host and train its AI models, ensuring data sovereignty and compliance with regional regulations. These AI capabilities allow Tabby to analyze millions of daily transactions in real-time, extending safer credit access and delivering tailored product recommendations, thus improving user experience and operational efficiency.

7. The Competitive BNPL Landscape in the Middle East

Tabby faces competition from other regional BNPL providers such as Tamara, Postpay, Spotii, and Cashew. While these competitors offer similar installment payment products, Tabby’s advantages come from extended installment options, strict adherence to Shariah principles (like elimination of interest and late fees), and strong retail partnerships. Moreover, Tabby’s diverse product suite, including Tabby Shop and Tabby Care, gives it an edge in customer engagement and loyalty. Competition remains intense as market players vie for merchant and user adoption in this rapidly evolving fintech sector.

8. Challenges in the BNPL Sector

Operating in a highly regulated financial services space, Tabby contends with evolving government oversight, such as licensing requirements introduced by regulatory bodies like the Saudi Central Bank. Maintaining compliance requires continuous updates to systems and documentation. The platform must also manage credit risk prudently—providing interest-free credit poses the challenge of potential defaults. Consumer education is critical too, as many MENA consumers remain unfamiliar with BNPL concepts and wary of debt products. Furthermore, the global BNPL industry has faced funding slowdowns and scrutiny post the pandemic, impacting market dynamics and investor sentiment.

9. Expansion, Funding, and Valuation

Since inception, Tabby has raised over $1.8 billion through multiple funding rounds, including a $160 million Series E round in February 2025, which valued the company at $3.3 billion. Previous funding milestones saw Tabby enter the unicorn club, positioning it as the most valuable fintech firm in MENA. Investor interest comes from prominent firms such as Blue Pool Capital, Hassana Investment Company, STV, and Mubadala Investment Capital. With ambitions to support Saudi Arabia's Vision 2030 initiative, Tabby plans to expand its financial service offerings further and aims for a public listing in the near term to fuel continued growth.

10. Future Outlook and Vision

Tabby envisions evolving into a comprehensive financial super app for the Middle East, providing a broad ecosystem of products beyond BNPL—including digital spending accounts, cards, savings tools, and personalized money management. Its commitment to transparency and ethical finance is expected to remain a core value. Continuous AI integration will deepen personalization, widen credit accessibility safely, and improve fraud controls. As digital adoption accelerates in the MENA region, Tabby is well-positioned to drive the transition toward cashless economies, helping millions gain innovative, trustworthy financial services.

Conclusion

Tabby stands as a pioneering fintech innovator in the MENA region, transforming how consumers access credit and manage payments through its scalable, Shariah-compliant BNPL platform. With staunch leadership, significant technological investment, and a clear mission of financial inclusion and responsible payments, Tabby has rapidly fostered trust and growth among users and merchants alike. Navigating regulatory complexities and competitive pressures, the company continues to expand its offerings and prepare for public markets, exemplifying the potential of fintech to reshape regional retail and finance.

How Tabby harnesses technology, culture, and finance to build an enduring ecosystem may well shape the future of digital payments in emerging markets worldwide.