Saudi’s buy-now-pay-later start-up Tamara has secured $100 million in a Series B equity round to expand its products and services, and make inroads into new markets in the GCC.
Tamara will use the funds to enhance the customer and partner merchant experience while focusing on boosting its presence in the Middle East, especially the UAE.
The financing round was led by Sanabil Investments and included Coatue, Shorooq Partners, Endeavor Catalyst and follow-on investment by Series A lead Checkout.com.
Last April, six months after its launch, Tamara secured $110 million Series A led by Checkout.com.
Tamara allows online and in-store shoppers in Saudi Arabia, the UAE and Kuwait to pay interest-free in three instalments, spread over two months, or delay payments by 30 days.
“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.”
Today, Tamara has 22 full-time employees and 150 contractors across the Middle East. The start-up has the potential to “transform huge industries such as financial services and shopping in the region and beyond”, said Sanabil Investments.
“Tamara’s exceptional growth while maintaining healthy unit economics speaks volumes about what the team has achieved so far.”
Last year, Tamara processed transactions worth $267 million.
Tamara’s partners include IKEA, Shein, Adidas, Namsi and Jarir.
Set up in September 2020 by local entrepreneurs, Tamara has been gaining traction in the field of payment solutions by bolstering small start-ups along with big names. It was the first buy-now-pay-later fintech business to enrol in the Sandbox program, run by the Saudi Central Bank.
In June, Checkout.com research revealed UAE consumers as one of the key targets for BNPL fintech start-ups in the region this year.
Thirty-one per cent of UAE residents plan to use the technology in the next year leading Saudi Arabia by four per cent, Kuwait by five per cent and Bahrain by 13 per cent, the research revealed.