BNPL platform Tamara becomes 1st Saudi fintech unicorn after $340m funding round

Buy now, pay later platform Tamara has become the first Saudi fintech startup to reach a $1 billion valuation after raising $340 million in its series C funding round, according to a statement.

Led jointly by SNB Capital and the Public Investment Fund’s Sanabil Investments, the capital injection bolsters Tamara’s position in Saudi Arabia’s fintech landscape as it aims to diversify its offerings.

The company plans to utilize the money for new products and services beyond the BNPL model and target sectors such as shopping, payments and banking in the Kingdom and wider Gulf region.

Established in late 2020 by Saudi co-founders Abdulmajeed Al-Sukhan, Turki Bin Zarah and Abdulmohsen Al-Babtain, Tamara is one of the first companies to receive a permit to provide BNPL services from the Saudi Central Bank, known as SAMA.

“Saudi Arabia deserves its place on the world stage for financial technology. 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 own leapfrog moment,” Al-Sukhan said.

He further stated that this funding round is a testament to the growing ecosystem that makes this region a great place for talent to flourish.

“As we set our sights on becoming the next big giant in shopping, payments and banking, we remain ever grateful for the significant opportunity in this underpenetrated and underserved banking and financial services landscape,” Al-Sukhan said.

He added: “SAMA has been instrumental in creating an enabling environment for Saudi companies like Tamara to grow and innovate in the Saudi fintech sector.”

Headquartered in Saudi Arabia, Tamara has a presence in the UAE and Kuwait, with over 10 million users on its platform.

The company also claims to have 30,000 partner merchants and reported six times annual run rate revenue growth in less than two years.

Tamara’s total funding now reached $500 million in equity-based capital and over $400 million in debt financing since its inception.

The new round saw participation from Shorooq Partners, Pinnacle Capital, Impulse, Coatue, Endeavor Catalyst and Checkout.com.

Tamara has recently removed late payment fees from its services to highlight its dedication to offering financial solutions that align with Shariah principles, customer centricity and transparency.