Every great idea starts with a moment like a little spark, a lightbulb, or sometimes just a “what if?” whispered over a cup of coffee. Back in 2019, two ambitious entrepreneurs, Hosam Arab and Daniil Barkalov, had one of those moments. Let’s look at how this fashion e-commerce gets to fintech magic.
What was that spark?
Hosam, who had already made waves as the former CEO and co-founder of Namshi, one of the GCC’s leading online fashion platforms, knew a thing or two about how people shop.
But he also knew something deeper: in the GCC, while online shopping was booming, paying for it wasn’t always smooth sailing. Credit cards weren’t common for everyone, and many customers wanted flexibility without financial fear.
So Hosam and Daniil rolled up their sleeves and launched Tabby, a simple idea that made a huge impact, letting people “buy now, pay later” (BNPL) with zero interest and total transparency. And just like that, they didn’t just start another fintech; they started a movement.
Today, Tabby is valued at around US$660 million, has over 10,000 brand partners, and is used by more than 3 million active shoppers across the GCC.
But how did two founders turn a humble fashion idea into one of the Middle East’s most exciting fintech success stories? Let’s break down this journey step-by-step.
When Shopping Met a Brilliant Idea
Hosam’s years at Namshi gave him front-row seats to e-commerce growth and its gaps. Many customers wanted to buy more, but credit friction stopped them. Together with Daniil, he envisioned a world where you could grab your favourite sneakers or sofa now and pay later or interest-free, stress-free.
Launched in 2019, Tabby quickly became the go-to “BNPL” app in the UAE, Saudi Arabia, Kuwait, and Egypt. It allowed shoppers to split their payments into four easy instalments, making luxury feel a little lighter on the wallet.
Brands like H&M, IKEA, SHEIN, Adidas, and Noon jumped on board, and soon, so did everyone else.
From Fashion Floors to Fintech Frontiers
Tabby didn’t stay a “shopping app” for long. The founders quickly realised their idea wasn’t just about buying clothes. It was about reinventing the way people experience finance.
They began expanding from simple BNPL into full-scale fintech services, including the Tabby Card, allowing users to enjoy the same “buy now, pay later” perks in physical stores. It was finance, re-imagined — friendly, flexible, and fashionable.
The Numbers That Turned Heads
Here’s how Tabby went from startup to superstar in just a few years:
- 2019: Founded by Hosam Arab and Daniil Barkalov in Dubai.
- 2021: Raised US$50 million in Series B, valuing the company at US$300 million.
- 2022: Secured US$150 million in debt financing, the largest ever for a GCC fintech at that time.
- 2023: Raised another US$58 million in Series C, hitting a US$660 million valuation.
- 2024: Partnered with over 10,000 brands and crossed 3 million active shoppers with 5× revenue growth year-on-year.
Building the Brand Brick by Brick
So what exactly made Tabby’s rise look effortless? Some facts from Entrepreneur Middle East:
- They started small, but thought regional. From Dubai, they expanded fast into Saudi Arabia, Kuwait, and Egypt.
- They built trust with brands. Big retailers loved that Tabby boosted sales and offered customers a smooth experience.
- They kept design simple. A clean interface, quick checkout, and clear terms, no finance jargon, no stress.
- They raised smart money. Tabby’s mix of equity and debt funding helped scale fast without losing control.
- They built for both online and offline. The Tabby Card bridged that gap perfectly.
The Clever Part: Why Tabby’s Model Just Clicked
Tabby’s charm lies in its simplicity; it didn’t try to change consumer behaviour, it made existing behaviour smarter.
- Many GCC consumers don’t rely on credit cards. BNPL gave them an easy alternative.
- Tabby charged retailers, not shoppers, for keeping things win-win.
- It offered manageable, short-term instalments, reducing risk for everyone.
- By combining offline + online, Tabby reached every corner of retail.
You can now look at these stats of Tabby from fintech news.ae, “MENA’s shopping and financial services app, has raised $58 million from Sequoia Capital India, STV and PayPal Ventures, Mubadala Investment Capital, Arbor Ventures and Endeavor Catalyst in a Series C round which values the company at $660 million.”
What Hosam Says About It All
In an interview with Wamda, Hosam Arab summed up their vision perfectly:
“It has never been more important for people to have access to payment flexibility to stay in control of their finances. Despite downward pressure on fintech valuations, our business continues to sustainably scale.”
That right there is sustainable, scalable, and human-friendly; it’s Tabby’s secret sauce.
Where Tabby Stands Today
As of now, Tabby is the leading BNPL platform in the Middle East, valued close to US$660 million, with investment from global heavyweights like PayPal Ventures, STV, and Sequoia Capital India.
Their roadmap ahead? Even brighter. Tabby plans to roll out new financial products, reach more markets, and continue giving shoppers what they love — flexibility and freedom.
Lessons from Tabby’s Journey
If you’re dreaming about your own startup or side hustle, here’s what Tabby teaches us:
- Start with a simple question. “What if paying was easy?” was all it took.
- Solve a real problem. People didn’t need another app, they needed flexibility.
- Build partnerships early. Retailers were Tabby’s best growth allies.
- Keep it transparent. No hidden fees, no heavy words, people love honesty.
- Dream regional, act local. They scaled step by step across MENA.
Final Thoughts: Turning Simplicity Into Success
Tabby’s story is a perfect example of how simplicity can transform an entire industry. What started as a stylish shopping feature has become a financial revolution, reshaping how millions in the GCC think about payments.Hosam and Daniil didn’t invent buying or paying. They reinvented the experience. They made finance friendly, flexible, and even a little bit fun.
