Mubadala-backed Dubai fintech startup loads up on debt financing

Mubadala-backed Dubai fintech startup loads up on debt financing

A Dubai-based buy-now, pay-later company secured one of the largest debt facilities for a fintech startup in the Middle East and North Africa. Underscoring the growing interest from international investors in the regional fintech sector, Silicon Valley-based Partners for Growth will provide $50m in debt financing to tabby to help expand its business. The size of the facility may increase as the company becomes larger over time, according to a statement. "tabby is one of the fastest growing companies in the MENA region and they have an attractive market opportunity ahead,“ said Max Penel, investment director at PFG. Just over half a year after a funding round led by Mubadala Capital and Hong Kong's Arbor Ventures, tabby is among companies that are flourishing as the pandemic accelerates the shift toward online retail and digital payments. Buy-now, pay-later services allow customers to purchase goods and then pay for them in installments or after a certain period of time free of interest. Saudi competitor Tamara recently raised $110m in debt and equity financing from checkout.com in one of the region's largest startup investments to date. Australia's Zip Co. Ltd. said last month it was paying about $16m to buy the shares it