Consumer demand for credit options varies across regions, and for fintechs, understanding these differences is key to survival. In developed markets, where credit cards are common, consumers often view buy now, pay later (BNPL) offerings positively because of their flexible installment options.But in emerging markets like the Middle East, where credit card penetration is low but spending power is high, BNPL has an even more convincing use case. The model is gaining such strong traction that Tabby, one of the regions pioneers, has now become the most valuable fintech in MENA after securing $160 million in a Series E round at a $3.3 billion valuation.Growth equity investor Blue Pool Capital and investment management firm Hassana Investment Company co-led the financing. Saudi-based investor STV and Wellington Management also participated.The round comes less than 18 months after Tabby raised $200 million in a Series D round when it was valued at $1.5 billion. Since then, Tabby which says it is profitable has doubled its valuation and annualized transaction volume, which now exceeds $10 billion, according to the company.As our volumes have doubled, the profitability of the business has grown significantly, Tabby founder and CEO Hosam Arab tells TechCrunch. He attributes this growth to the launch of new products, which have driven higher usage frequency. Customers used to rely on us only for e-commerce or [point-of-sale] spending. Now, especially in the UAE, they see Tabby as a tool to manage all their spending, whether its buying a cup of coffee or taking an Uber ride, he adds.Move into broader financial servicesOriginally focused on online transactions, Tabby later expanded into in-store payments, then deeper into retail and financial services. Its Tabby Card now allows users to spend flexibly, while Tabby Plus offers a subscription-based rewards program. Meanwhile, Tabby Shop provides longer-term payment plans to help users access better deals.The Riyadh-headquartered fintech, which now supports 40,000+ brands and merchantsincluding Amazon, Adidas, IKEA, Samsung, and Noonsays expanding its product line has helped grow its user base to 15 million customers across Saudi Arabia, the UAE, and Kuwait, a 50% increase since October 2023.Tabby isnt stopping at credit. Last year, it acquired Tweeq, a Saudi-based digital wallet provider, as part of its plan to expand into broader financial services, including digital accounts, payments, and money management tools, offerings that align with the countrys push toward a cashless economy.Further on its road map, Tabby is eyeing remittances, an area where it already has strong positioning. With Saudi Arabia and the UAE among the worlds largest remittance markets, Tabbys customer baseheavily composed of expatspresents a natural opportunity.While Arab declines to share specific details, Tabby may initially target the UAE-India corridor, one of the busiest remittance routes globally. He does note that flexibility will be key in Tabbys provision of remittance services. Unlike traditional remittance providers, the fintech plans to allow users to split remittances over time, an option few competitors offer.Brewing competition and IPO plansTabby competes regionally with Coatue-backed Tamara in the BNPL space. With remittances, it will face newfound competition from global players like Revolut, the U.K.-based neobank, which announced plans to enter UAEs $44 billion market last September.Yet, Arab is confident that the scale, local market expertise, trusted brand, and deep customer relationships Tabby has amassed as one of the regions largest financial services platforms, with a large customer base and an extensive merchant network, will work in its favor.On the IPO front, this Series E round might be Tabbys last private raise before going public on the Saudi Exchange. That was also supposed to be the case during its Series D, but market conditions may have delayed those plans. Were opportunistic with funding rounds, says Arab. This was the right discussion with the right partner at the right time, so we decided to raise now. That said, our plans for an IPO remain unchanged. Were fairly serious about it, and unless markets shift significantly, were unlikely to raise another private round.Investor demand for tech IPOs in MENA is rising. Talabats massive listing in Dubai last year showed the regions appetite for high-growth startups. Meanwhile, Klarnas expected IPO in April could serve as a bellwether for BNPL companies, signaling whats ahead for the sector. (Already, Amazon announced plans to buy Indian player Axio.) For now, though, Tabby, which has raised over $1 billion in equity and debt, is focused on scaling its financial ecosystemand when the time is right, it aims to be the regions next major tech listing. Per Bloomberg, the fintech, which moved its HQ from Dubai to Riyadh for this purpose, has hired three banks to work on the deal. Topics