UAE-based Tabby suspends operations in Egypt

UAE-based buy now, pay later platform Tabby will suspend operations in Egypt, just six months after entering the market.

“In a short period of time, we have seen very strong adoption of our products and services with some great merchant partners,” Tabby chief executive and co-founder Hosam Arab told The National.

“However, as with any business, we must prioritise projects that align with our long-term goals in core markets, and as a result, we have decided to pause our commercial operations in the Egyptian market.”

Tabby, founded in 2019, offers consumers interest-free, flexible payment options for online and in-store shopping. It operates in the UAE, Saudi Arabia, Kuwait and Bahrain and expanded to Egypt in September.

In a leaked e-mail to merchants explaining the “difficult decision”, the Tabby team said, “recent macroeconomic developments have made our operating model challenging while maintaining our principles of interest-free payments”.

As of March 23, customers will no longer be able to make new purchases using Tabby in Egypt.

Sellers were told to remove all Tabby branding from their shops, websites and apps by that date.

No date or timeline was given for a possible resumption of Tabby’s Egypt operation.

“Our confidence in Egypt’s potential in the region remains unchanged and we hope to one day revisit this decision,” the e-mail said.