Riyadh-headquartered financial services powerhouse Tabby has completed a secondary share sale, establishing an implied company valuation of $4.5 billion. The transaction saw new investors, including HSG and Boyu Capital, acquire shares from some of the company’s existing shareholders, signaling strong market confidence ahead of a potential public listing.
The Secondary Sale Transaction
The recent transaction was a secondary sale, meaning no new shares were issued by Tabby. Instead, existing investors sold a portion of their holdings to the new shareholders. Consequently, the company itself did not receive any proceeds from the sale. The identities of the selling shareholders and the specific size of the share sale were not disclosed. This move allows early backers to realize returns while bringing in new strategic partners who believe in the company’s long-term vision.
A Pre-IPO Valuation Surge
This new $4.5 billion valuation marks a significant increase from the $1.5 billion valuation Tabby achieved in 2023 after its $200 million Series D funding round. The substantial jump underscores the fintech firm’s rapid growth and strong market position. The move is widely seen as a strategic step as Tabby prepares for an Initial Public Offering (IPO) in Saudi Arabia, for which it has already hired three global banks.
Investor Confidence in Regional Fintech
The new investors expressed strong confidence in Tabby’s leadership and its role in shaping the region’s financial landscape. Rock Wang, Managing Director at HSG, commented, “Tabby’s product velocity and rapid path to scalability reflect exceptional execution and a deep understanding of the market. We’re excited to partner with management as they continue to build a comprehensive financial services flywheel in a region with tremendous growth potential.”
Joey Chen, Partner at Boyu Capital, added, “Tabby has demonstrated strong product innovation and disciplined growth in a rapidly developing market, placing the company as the forefront leader in this region’s nascent financial technology sector.”
About Tabby
Tabby is a financial technology company focused on helping millions of people in the Middle East manage their spending and finances. The buy-now-pay-later (BNPL) firm partners with over 40,000 global brands and small businesses, including major retailers like SHEIN, Amazon, Adidas, IKEA, and Noon, to offer flexible payment solutions both online and in-store. Headquartered in Riyadh, Tabby currently operates in Saudi Arabia, the UAE, and Kuwait.
Source: Zawya
