Saudi Arabia-based buy now pay later platform Tamara has been valued at over $1 billion in its latest equity funding round, making it one of the region’s largest fintech investments.
Tamara raised $340 million in a Series C equity funding round led by SNB Capital and Sanabil Investments, Shorooq Partners, Pinnacle Capital, Impulse, Coatue, Endeavor Catalyst, and Checkout.com, the fintech firm said in a statement on Monday.
Adding to its recent achievements, Tamara secured debt financing led by Goldman Sachs and Shorooq Partners, expanding its warehouse facility to a potential $400 million. With this, Tamara has raised $500 million in equity funding and over $400 million in debt financing since its establishment in late 2020.
Operating in KSA, UAE, and Kuwait, Tamara boasts a user base exceeding 10 million, with over 30,000 partner merchants. Founded by Abdulmajeed Alsukhan, Turki Bin Zarah, and Abdulmohsen Al Babtain, the company obtained permission from the Saudi Central Bank (SAMA) to offer BNPL services, positioning itself as a pioneer in the region.
“Just as Tamara was created by local entrepreneurs, nurtured by a supportive local ecosystem and market regulators, we stand here today, humbled and hungry, ready for our leapfrog moment,” said Abdulmajeed Alsukhan, co-founder and CEO of Tamara.
“This achievement is a testament to the ecosystem, to our incredible team, investors, and the collaborative spirit that makes this region a great place for talent to flourish,” he added.
The company’s business model is a commerce enabler for partners, leveraging high-intent shoppers through co-marketing and a flexible payment experience. Partnering with global brands like SHEIN, IKEA, Noon, and regional businesses, Tamara reports that over one-third of its users initiate their shopping journey within the app, driving higher returns for partner merchants.
The company said it sees significant opportunities in the burgeoning fintech sector across the region, with lending penetration in Saudi Arabia at around 30%, indicating substantial growth potential compared to more mature markets.
The BNPL sector in Saudi Arabia has seen substantial growth, with registered customers soaring from 76,000 in 2020 to 10 million in 2022, according to the SAMA Fintech 2022 report. Factors, including the rise in e-commerce popularity, propel the industry’s growth. Forecasting a 20% CAGR in digital payment volumes until 2025, the region anticipates 13 billion transactions valued at $170 billion.
