DUBAI, Feb 12 (Reuters) - Gulf fintech tabby has more

than doubled its valuation to $3.3 billion after completing a

new funding round, as the buy now, pay later (BNPL) firm

prepares for a stock market listing within 18 months, its chief

executive told Reuters.

The company raised $160 million in a Series E financing

round led by existing investors Blue Pool Capital, a Hong

Kong-based investment firm backed by Alibaba's ( BABA )

co-founder Joe Tsai, and the Saudi pension fund's investment arm

Hassana Investment Company.

tabby was valued at $1.5 billion when it closed a previous

funding round in late 2023.

Customers can use tabby, which counts Abu Dhabi sovereign

wealth fund Mubadala among its backers, to defer paying for

purchases. Founded in 2019, it has tied up with more than 40,000

brands and businesses including Amazon ( AMZN ) and fast-fashion

retailer Shein in markets such as Saudi Arabia and the United

Arab Emirates.

BNPL soared in popularity after the COVID-19 pandemic forced

more shoppers online. Regulators in Britain and the United

States have previously warned about its use, saying consumers

needed to understand the risks.

Other existing tabby investors STV and Wellington Management

participated in the latest funding round.

"It really is around just making this next leap for the

business, from a pure buy-now-pay-later business to a lot more

than just that," CEO Hosam Arab told Reuters in an interview

when asked how the new funding would be used.

Arab said tabby wanted to keep investing in its product

range including digital spending accounts, cards, payments and

money management tools.

The company, which is targeting 20 million users by the end

of the year, is looking to float in the next 18 months, with

Saudi Arabia among the potential listing venues, Arab said.

tabby has hired HSBC ( HSBC ), JP Morgan and Morgan

Stanley ( MS ) to work on the IPO, according to a source with

knowledge of the matter.

The three banks declined to comment.

The Gulf's stock markets have seen a wave of new IPOs in

recent years, aided by the region's governments trying to

diversify economies away from oil.

Arab said that "a lack of tech and growth businesses in the

public markets in the region" could help tabby appeal to

investors.