Saudi-based buy-now-pay-later platform Tamara has secured $100 million in a Series B funding round to continue its expansion across the region.
Sanabil Investments, supported by Saudi Arabia’s sovereign wealth fund, led the investment round alongside Coatue, Shorooq Partners, Endeavour Catalyst and global payment platform Checkout.com.
The platform began its expansion in June, offering its services to consumers across the UAE.
With the investment, Tamara is also considering a listing on Saudi Arabia’s financial market and other regional markets in the future.
“Our mission is to deliver an exceptional experience to our customers by offering transparent, seamless and inclusive payment solutions,” said Abdulmajeed Alsukhan, co-founder and CEO of Tamara.
“Tamara has established itself as the trusted, reliable and sustainable local partner for any regional or global business looking to expand in Saudi Arabia and MENA.
“We act as a marketing and discovery channel for our partner merchants to drive new customers and incremental sales online and in-store.”
Founded in 2020, Tamara was the first buy-now-pay-later platform to enrol in Saudi Central Bank’s Sandbox programme, which invites fintech companies to support the kingdom’s digital transformation.
Retailers partnered with the platform have seen a 40 per cent increase in average order value, a 15 per cent rise in conversion, 20 per cent reduction in cash-on-delivery orders and fewer order returns, said Tamara.
“Tamara’s exceptional growth while maintaining healthy unit economics speaks volumes about what the team has achieved so far,” said Sanabil Investments.
“We at Sanabil back industry disruptors and transformers and in Tamara, we found a team that has the qualities to transform huge industries such as financial services and shopping in the region and beyond.”
To date, Tamara has received $216 million in equity and debt investments and expects to be profitable by the end of next year, Mr Alsukhan told Khaleej Times.
The platform has entertained more than three million shoppers across the UAE and Saudi Arabia and is partnered with more than 4,000 merchants across the region, including Namshi, SHEIN, STYLI, Fitness Time, Faces, Swarovski, Adidas, IKEA and Jarir.
“Tamara has emerged as the payment method of choice for millions of consumers across the region,” said Remo Giovanni Abbondandolo, vice president of Checkout.com’s Middle East and North Africa division.
“As the leading payments provider in Middle East and North Africa, Checkout.com’s investment demonstrates our belief in Tamara’s exceptional team and our commitment to supporting digital growth in the region.
“As such, Checkout.com will also serve Tamara as a payment method to our merchants – to compound growth in one of the fastest-growing markets globally.”
By the end of the year, 50 per cent of consumers in the region are expected to use buy-now-pay-later services, according to reports by global payment platform Checkout.com.
Reports also found that buy-now-pay-later services were most popular in the UAE, with 31 per cent of consumers interested in such platforms.
Saudi Arabia was ranked a close second, with 27 per cent of its consumers interested, followed by 26 per cent of consumers in Kuwait and 18 per cent of consumers in Bahrain.
