- Saudi BNPL startup Tamara hits $1 billion valuation.
- Tamara offers interest-free installments for 10 million registered users across Saudi and Gulf states.
- Despite the global funding slowdown, the unicorn milestone highlights continued fintech momentum in the region.
Saudi Arabia-based buy now, pay later (BNPL) platform Tamara has raised a $340 million Series C round that values the 3-year-old fintech startup at $1 billion.
Who participated in the round?
The round was led by Saudi asset manager SNB Capital and Sanabil Investments, which is owned by the kingdom’s sovereign Public Investment Fund. Shorooq Partners, Pinnacle Capital, and Impulse also participated.
Tamara offers interest-free installment plans for online shoppers across Saudi Arabia, UAE, and Kuwait.
Traction so far
It claims over 10 million registered users and partnerships with 30,000 merchants, including SHEIN, IKEA, Noon, and Farfetch.
The capital injection comes 10 months after Tamara secured $400 million in debt financing from Goldman Sachs and others to expand its BNPL offering.
Tamara has raised $500 million in equity and over $400 million in debt since 2020.
Their competition
Regional rival Tabby unveiled similar metrics after its $200 million fundraising at a $1.5 billion valuation in October.
The companies are riding surging BNPL adoption in Gulf states, particularly the home market of Saudi Arabia.
SAMA recorded 3 million BNPL users in Saudi Arabia in 2021, soaring to 10 million this year and accounting for 30% of the population.
Tamara touts being Saudi’s first homegrown fintech unicorn.
CEO’s thoughts
CEO Abdulmajeed Alsukhan said the milestone “is a testament to the ecosystem, our incredible team, investors and collaborative spirit that makes this region a great place for talent to flourish.”
The raise highlights continued VC momentum in the Gulf despite global funding declines.
Sovereign wealth funds like Saudi’s PIF have been active backers of VC firms and startups.
Regional capability to build billion-dollar companies is also expanding with regulatory and government support.
