Tabby, a buy-now-pay-later startup based out of Dubai and Riyadh, has confirmed that it raised $23 million in a debt and equity Series-A round led by existing investor Southeast Asian VC Arbor Ventures.

The FinTech startup refrained from divulging the specifics but has since reportedly confirmed that the breakdown of debt and equity is largely tilted towards the latter.

Other investors to have joined the round include STV, Global Founders Capital, Raed Ventures, Global Ventures, Jameel Investment Management Company, HOF Capital, MSA Capital, and Arab Bank. 

Judging by the net yield from the round, it might very well be among the largest Series-A for a startup in the region. It is also worth noting that Tabby had raised another $7 million earlier this year, which brings the net funding raised by the company to $30 million to date. 

Tabby was founded by Hosam Arab in 2019. Since its launch, the startup has forged alliances with several UAE- and Saudi-based retailers to enable consumers to defer paying for their purchases for a period spanning up to 30 days.

Alternatively, Tabby users can also opt to pay for their purchases in four monthly equal installments, the first of which is to be paid right at the time of the purchase.

Tabby claims to have tie-ups with more than 500 merchants including leading retail brands such as Ikea and Toy R Us. 

“As banks across the region have tightened their credit policies and consumers increasingly seek ways to manage their finances, tabby has seen tremendous market adoption of its Buy Now Pay Later offering,” the startup said in a statement.