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The Tabby story: from cash on delivery to a multibillion valuation

It launched weeks before COVID, moved its headquarters to Riyadh, and in 2026 announced a round at a $6.5 billion valuation. What did Tabby get right?

AAbdurrahman Helal11 November 2026, 2 min read

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The story of Tabby: how Tabby turned cash on delivery into a multibillion-dollar opportunity

Imagine launching a payments app in February 2020, and a few weeks later the whole world shuts down. That's how Tabby began.

A problem he saw every day

Hosam Arab studied electrical engineering at Queen's University and earned an MBA from Harvard. In 2011 he co-founded Namshi, the online fashion retailer, and served as its managing director and then CEO until 2019.

At Namshi he saw the same problem every day: most people didn't want to pay online. They wanted to pay on delivery.

The idea: buy now, pay later

In 2019 he founded Tabby in Dubai with Daniil Barkalov, who had worked at Lamoda Group and then served as CEO of Revo Technology.

The idea is simple:

  • The shopper splits a purchase into four interest-free payments.
  • The merchant gets paid in full, and Tabby carries the repayment risk.
  • Revenue comes mainly from merchant fees.

Tabby didn't build an alternative to the card. It built an alternative to cash on delivery.

The biggest obstacle in your market might be your product.

COVID became fuel

The timing that should have killed it pushed everyone to shop online. After a $2 million seed round in 2019, a $7 million round followed in 2020 to launch in Saudi Arabia.

The move to Riyadh

In 2023 it made a big call: it moved its headquarters to Riyadh after an agreement with the Ministry of Investment, because Saudi Arabia had become its largest market. It is licensed by the Saudi Central Bank (SAMA), and it added longer Sharia-compliant installment plans.

Funding

  • November 2023: A $200 million Series D led by Wellington Management at a $1.5 billion valuation, making it a unicorn.
  • February 2025: A $160 million Series E at a $3.3 billion valuation.
  • September 2026: A $233 million round led by Blue Pool Capital at a $6.5 billion valuation, subject to SAMA approval.

Where is it now?

Tabby says it has 25 million users, 70,000 merchants, and more than $18 billion in annual transaction volume. Its Saudi arm reported audited revenue of $378 million in 2025.

The lesson for you as a founder

Don't run from the habit that holds your market back. Understand why people hold on to it, then build the product that gives them the same sense of safety in a better way.

Sources: MENAbytes 2019, The Fintech Times 2020, Argaam 2023, Wamda 2023, Tabby 2025, Tabby 2026, FWDstart 2026.

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