The valuation leap of Saudi Arabia-based Tabby to $4.5 billion is far more than just a headline about numbers. It reveals the strength of a growing fintech ecosystem in the Middle East, the power of buy-now-pay-later (BNPL) tools, and the lessons entrepreneurs worldwide can learn from the shift in investment dynamics. With nearly 20 years of experience across disciplines, I, Violetta Bonenkamp, bring to you my insights as a seasoned entrepreneur and multidisciplinary thinker, dissecting Tabby's success story and what it means for founders globally.
Tabby’s 10x Growth: What Entrepreneurs Need to Understand
Tabby’s rise from its 2019 inception to a $4.5 billion valuation today shows that startups can flourish even in traditionally conservative markets if they respond smartly to economic undercurrents. The Middle East has seen growing demand for BNPL platforms, driven by major shifts in consumer credit models and a young, digitally savvy population.
Entrepreneurs following Tabby’s trajectory can draw lessons that apply internationally:
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Solve Emerging Problems:
BNPL platforms are thriving because they fill a gap in accessible credit. Think about how your solution responds to underaddressed pain points within your audience's ecosystem. -
Leverage M&A and Secondary Sales:
Tabby’s valuation surge occurred via a secondary sale, allowing investors like HSG and Boyu Capital to join its journey without diluting existing equity. Many entrepreneurs hesitate to pursue secondary transactions out of fear of losing 'control,' but Tabby’s example shows that strategic partnerships can offer more than capital: expertise, credibility, and network access. -
Focus on Regional Expansion:
Operating in Saudi Arabia, UAE, and Kuwait enables Tabby to tap into a relatively untapped market. Entrepreneurs elsewhere should consider expansion across similar clusters (Europe, ASEAN nations, LATAM) to reap the benefits of economies of scale.
Statistics Entrepreneurs Can't Ignore
- $700M Debt Facility Raised: Tabby’s ability to secure a large debt round in December 2023 reinforces the fintech space’s appeal globally, especially in high-growth markets such as MENA.
- More Than Doubling Valuation in Eight Months: Fast-tracked funding rounds are possible when a startup aligns itself well with international investors’ strategy.
- 40,000 Corporate Clients from SMBs to Enterprises: Building diverse, sizable B2B client portfolios is key for founders wanting to scale quickly.
According to Gartner Research, fintech investment in MENA tripled between 2020-2024, making it a hotbed for cross-border investor interest. Tabby has directly benefited from this trend.
How to Ride the Fintech Wave Like Tabby
Tabby’s success in scaling to billions didn’t happen overnight. Here’s how entrepreneurs across industries, not just fintech, can apply their strategies:
1. Understand Regional-specific Demand
What challenges exist in your target region that aren’t being solved? Tabby recognized how BNPL services could ease accessibility for consumers in areas where traditional loans were difficult to obtain. Similarly, you must pinpoint cultural, economic, or industry-specific needs you can address.
2. Build Partnerships Wisely
The lesson? Investors can give you dollars, but the right partners like HSG and Boyu Capital bring doors to the markets and expertise. Build relationships that align with your mission to navigate scaling internationally.
3. Think Ahead About IPO Possibilities
Tabby’s plans for a public offering in 2026 shows it already understands its growth trajectory. Have a strategy in mind for scaling post-investment, whether through IPOs, M&A, or licensing.
Common Mistakes to Avoid
While Tabby’s trajectory sets a stellar example for fintech startups, entrepreneurs need to avoid roadblocks that can derail their ventures:
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Ignoring Local Nuances:
Assume all markets work the same, and you’re bound to fail. For instance, Tabby integrated itself seamlessly into the MENA region by addressing the specific demand for installment credit tools. -
Rushing Without Proper Financial Foundations:
You can’t scale at Tabby’s level without a disciplined financial strategy. Take a deep dive into cash flow management and consider early partnerships with ventures like Venture Deals by Brad Feld to build foundational knowledge. -
Underestimating Cultural Shifts:
Consumer behavior in different regions reacts uniquely to innovations. BNPL works for Tabby in the Middle East due to the young population’s aspirations and limited access to traditional credit solutions. For your startup, understanding future cultural tailwinds can be key.
Why Familiarity is More Than What Counts
Diversity of thought is often overlooked but is a goldmine for long-term startup success. My approach as both an entrepreneur and neuroscientific researcher gives me perspective on combining creativity with pragmatism. Tabby’s play on enabling financial accessibility mirrors strategies seen in underexplored sectors worldwide, such as blockchain-based property protection tools like CADChain, which I manage. Similar foresight can lead others to tap into massive opportunities for growth regardless of their industry.
Final Takeaways for Entrepreneurs
Saudi-based Tabby, now valued at $4.5 billion, has become a beacon for startups everywhere, showcasing that rapid growth doesn’t require ubiquitous presence. Instead, success stems from pinpointed market insights, rapid scaling, and strategic partnerships.
Embracing the approach to identify emerging opportunities in untapped regions (including focusing deeply on underserved needs by collaborating globally), startups can build similar exponential trajectories.
In my startup journey, I’ve learned that solid metrics and local insights paired with robust strategic design tools, like those mentioned in AI-powered business model generators, can give you the tools for growth. Whether you’re building a fintech unicorn like Tabby or innovating in deep tech, know one thing: every funding round should feel like the cherry on your vision masterpiece.
Make excellence your daily currency. Entrepreneurial rigor can, and will, turn ideas into billions.
Related Resources:
- Explore MENA’s Fintech Conference openly: MENA Fintech Forum
- Sharpen financial readiness (Investor Checklist Tool).
FAQ
1. What is Tabby, and why is it significant in the fintech world?
Tabby is a buy-now-pay-later (BNPL) fintech startup based in Riyadh, Saudi Arabia. It recently increased its valuation to $4.5 billion, positioning itself as a leading player in financial services in the Middle East. Learn about Tabby's rise
2. How did Tabby achieve a $4.5 billion valuation?
Tabby achieved this valuation through a secondary share sale, allowing firms like HSG and Boyu Capital to acquire shares from existing investors without issuing new shares. Explore Tabby's secondary share sale
3. What markets does Tabby operate in?
Tabby operates in Saudi Arabia, UAE, and Kuwait, targeting an underserved market with a young, tech-savvy consumer base. Read more about Tabby's regional strategy
4. What customers does Tabby serve?
Tabby works with over 40,000 corporate clients across SMBs and enterprises. These client relationships have been critical to the company's growth trajectory.
5. What are BNPL platforms, and why are they popular?
BNPL platforms allow customers to make purchases and pay for them later in installments. They have grown popular in markets where traditional credit solutions are either limited or infeasible for younger, tech-savvy consumers. Discover more about BNPL trends
6. Is Tabby planning an IPO?
Yes, Tabby has announced plans to go public in 2026, aligning with its ambitious growth goals and reflecting investor confidence in its scalability. Read about Tabby's IPO timeline
7. What lessons can entrepreneurs learn from Tabby’s success?
Entrepreneurs can learn to focus on solving specific regional issues, consider expansion into underserved markets, secure strategic partnerships, and plan ahead for scalable growth. Learn from Tabby's entrepreneurial journey
8. How much funding has Tabby raised so far?
In addition to the secondary sale, Tabby has secured $700 million in debt and raised a $50 million Series D extension in December 2023. Dive into Tabby's funding highlights
9. What role do strategic partnerships play in fintech growth?
Strategic partnerships, such as Tabby’s collaboration with HSG and Boyu Capital, provide not only capital but also critical expertise and access to networks that accelerate growth in target markets.
10. Why is MENA considered a hub for fintech ventures?
The MENA region has seen fintech investment triple between 2020-2024, fueled by geographic and demographic growth opportunities, especially in underserved markets. Learn more about MENA fintech growth
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.
