Tamara, a buy now, pay later platform based in Saudi Arabia, has successfully raised $340 million in its Series C funding round, resulting in a valuation of $1 billion. The financing was led by Saudi asset manager SNB Capital and Sanabil Investments, a company owned by the Public Investment Fund (PIF) of Saudi Arabia. This funding round, which includes both primary capital and a transaction involving secondary shares, stands as one of the largest investments in a fintech company within the region.
Key Takeaway
Tamara, a buy now, pay later platform in Saudi Arabia, has secured a $340 million Series C funding round, leading to a valuation of
billion. The company’s significant user base and market presence underscore the surging growth of buy now, pay later services in the region, particularly within the Saudi Arabian market.
Tamara’s Growth and Market Presence
Tamara has garnered a significant user base of over 10 million individuals across its primary markets of Saudi Arabia, the UAE, and Kuwait. The platform enables consumers to make purchases from a wide network of 30,000 partner merchants, which includes prominent regional and global brands such as SHEIN, IKEA, Jarir, Noon, eXtra, and Farfetch. This achievement positions Tamara as a leading player in the buy now, pay later sector, particularly within the Saudi Arabian market.
BNPL Usage and Market Trends in Saudi Arabia
The surge in buy now, pay later services in Saudi Arabia has been underscored by a report from the Saudi Central Bank (SAMA), revealing a substantial increase in registered customers utilizing BNPL services. The popularity of e-commerce and the projected growth of digital payments in the region have further fueled this trend, with BNPL services accounting for nearly 30% of the population in Saudi Arabia. These figures have attracted the attention of both local and foreign investors, reflecting the potential for significant growth and opportunity within the fintech sector.
Regional Impact and Regulatory Support
Tamara’s achievement of reaching unicorn status as a homegrown Saudi company, along with the support from local regulators, reflects a positive shift in the region’s capacity to cultivate billion-dollar enterprises. The substantial financial backing from entities such as PIF and the demonstrated commitment from regulatory bodies signal a promising environment for the development of fintech ventures in the Gulf region.
