Tabby, backed by Mubadala, expands BNPL payment model to Egypt

Dubai-based Tabby, buy now, pay later, has expanded to Egypt in a bid to tap into the country’s booming e-commerce sector by offering consumers flexible, interest-free payment options so that the cost of living continues to rise.

Tabby’s expansion into the Arab world’s third-largest economy aims to help Egyptians stay in control of their spending and get the most out of their money, the company said on Tuesday.

“We are excited to offer Egyptians flexible and honest payment experiences with no interest or fees,” said Ahmed Khalil, Managing Director of Tabby Egypt.

“We’re also excited to be a growth partner for our retail partners by helping them tap into millions of active shoppers.”

Egypt’s core annual inflation rate rose to 15.6% in July from 14.6% in June, according to central bank figures.

BNPL’s business model, which allows consumers to shop online instantly and spread their payments over interest-free installments, has exploded since the start of the Covid-19 pandemic, driven by millennials and Generation Z.

However, high inflation is also driving the popularity of the BNPL payment option around the world, with consumers taking advantage of short-term financing to split payments and better manage their money.

“The app creates financial products designed to create financial freedom in the way people buy, earn and save by reshaping their relationship with money,” the company said.

“Built on trust, not interest, the app enables commerce while encouraging responsible spending by giving its shoppers more buying power.”

BNPL’s Egyptian sector is expected to grow by 132.8% on an annual basis to reach $434.7 million in 2022, according to a report published by Research and Markets.

BNPL payment adoption in Egypt is expected to register a compound annual growth rate of 55.9% between 2022 and 2028, while the gross value of goods is expected to reach $6.23 billion by 2028 from $186.7 million in 2021, according to the report.

Existing BNPL players in Egypt include valU Consumer Finance, which partnered with Amazon, the world’s largest e-commerce company, in May to offer installment consumer finance as a payment method on

ValU is a wholly owned subsidiary of Egyptian bank EFG Hermes and was established in 2017.


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Tabby will allow Egyptian consumers to split their purchases into four interest-free payments at store checkouts, online and offline, to track their spending, the company said.

With over 2 million users, Tabby’s platform went live in the United Arab Emirates in February 2020. It expanded to Saudi Arabia in July 2020.

Since then, he has signed deals with over 3,000 global brands and small businesses in the UAE and Saudi Arabia, including H&M, Adidas, Nike, Ikea, Bloomingdale’s, Marks & Spencer, Swarovski and Toys R Us.

Last month, the company raised $150 million in debt funding from New York-based Atalaya Capital Management and existing investor Partners for Growth to help fund its global expansion.

It also raised $54m from Sequoia Capital India and STV in Saudi Arabia in March. Existing investors Mubadala Investment Company, Arbor Ventures and Global Founders Capital also participated in the company’s extended funding round, which began last year.

Updated: September 06, 2022, 8:30 a.m.

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