UAE-based Tabby shuts shop in Egypt
The BNPL startup had launched its base in Egypt about five months ago.
UAE-based buy now and pay later (BNPL) startup has shut operations in Egypt five months after its launch in the country.
The decision was taken in response to Egypt's tight macroeconomic conditions as a result of an economic fallout from a depreciating currency and high inflation rates, a report by Wamda said. Since March last year, the value of the Egyptian pound has dropped to 53% of its value.
While there was a good adoption of its product in the Egyptian market, the focus of the team is prioritising projects that align with its long-term goals in core markets, said Hosam Arab, Founder and CEO of Tabby. Hence, the decision to pause operations was taken. However, he mentioned that Tabby would continue looking at the region for future opportunities.
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The company would focus more on making the growth in its core markets such as the UAE, Saudi Arabia, Bahrain, and Kuwait more sustainable, he added.
Tabby recently raised $58 million in its Series C round from Sequoia Capital India, STV, and PayPal Ventures. This increased the company's post-funding valuation to $600 million.
The Egyptian pound's value fell thrice in 2022, which led to the International Monetary Fund (IMF) bailing the country out with a $3 billion loan in January. This marked the fourth time the country had to seek a bailout since 2016.
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Edited by Megha Reddy
