Tabby Preparing for IPO in Saudi Arabia with Major Bank Backing

​Tabby, the Saudi-based buy-now, pay-later (BNPL) company, is taking steps toward a potential IPO with the support of global investment banks. The fintech firm, which has become one of the Middle East’s first unicorns, is reportedly working with HSBC, JPMorgan, and Morgan Stanley as it prepares for this next phase of growth. While the timing and specifics of the IPO are still in the early stages, the involvement of these major financial institutions signals significant plans for the company.

Originally founded in Dubai, Tabby relocated its headquarters to Saudi Arabia in 2023, aligning with its strategy to grow within the kingdom’s expanding fintech landscape. The company, which enables consumers to make purchases in installments, now operates in Saudi Arabia, the UAE, and Kuwait, with 12 million registered users and partnerships with over 40,000 brands. Its broadening footprint positions Tabby as a key player in the regional BNPL market, competing with local rivals like Tamara.

Tabby’s IPO plans come amid a busy year for public offerings in Saudi Arabia, where companies like Derayah Financial, Entaj Industrial Services, and Umm Al Qura for Development & Construction have already announced their intentions to list. As part of this growing trend, Tabby’s IPO will add to the rising activity in the kingdom’s financial markets.

The company has already secured significant funding, raising $1.5 billion in a funding round in November 2023, reflecting its rapid growth and market potential. Its backers include Saudi investors like STV and Hassana Investment Co., as well as international firms such as Sequoia Capital India, Soros Capital Management, and PayPal Ventures. This diverse support strengthens Tabby’s foundation as it moves forward with its IPO ambitions.

In addition to its BNPL offering, Tabby’s acquisition of the digital wallet operator Tweeq in September highlights its strategy to diversify and enhance its services. This move suggests the company is positioning itself as more than just a BNPL platform, aiming to expand its digital financial services across the region.

As Tabby looks ahead to its potential listing on the Saudi stock exchange, the company’s growth trajectory, investor backing, and regional expansion make it a notable player in the fintech sector. While the IPO is still in its planning stages, the upcoming months will likely provide more clarity on how Tabby’s future unfolds in one of the Middle East’s most dynamic financial markets.