Saudi Buy Now Pay Later platform, Tamara, raises $110 million series A funding for GCC expansion
Tamara, a Saudi Buy-Now-Pay-Later (BNPL) platform, announced the closing of the largest Series A funding round in MENA of $110 million led by Checkout.com. The investment will help Tamara expedite its expansion across the GCC by the end of 2021 and the wider Middle East region thereafter. The $110M cash injection (debt & equity) will be used by the Company to scale its team, open new countries in the GCC and fund the distribution of its BNPL product.
Tamara was the first BNPL firm to be enrolled in the Saudi Central Bank (SAMA)’s Sandbox program. Since then, it closed a round of $6 million in seed funding in January 2021 which was also considered the largest seed round in Saudi Arabia, 5 months after its official launch in September 2020.
Visa estimates that the eCommerce sector in the MENA region will be valued at $49 billion by 2022. Tamara is well-positioned to tap the rapidly growing BNPL segment in MENA. Its Shariah-compliant offering is used by merchants to increase sales revenue, whilst serving as a credible alternative to cash on delivery (COD). The solution is accessible via direct API integration or plugins and offers consumers new ways to pay online - either splitting balances over three payments or paying 30 days later.
The startup has quickly established itself as a market-leader in Saudi and successfully landed some of the most popular brands in Saudi such as SACO, Whites, Nejree and Nice One. The company also expanded its services to UAE with prominent partners like Namshi and Floward. Tamara was also able to launch its mobile consumer app along with its in-store service with multiple local partners.
Sebastian Reis, Executive Vice President at Checkout.com said: “As the partner of choice for the region's leading eCommerce merchants, Checkout.com is always on the lookout for ways to enhance the ecosystem. Tamara has rapidly proven itself to be a natural leader in the BNPL space. Our investment in Tamara will help the team realise their vision and expand rapidly, driving greater conversions for retailers and offer more flexibility for consumers.”