Tamara's Record-Breaking US$340M Funding Round Marks a Historic Moment for Saudi Fintech
Tamara, the leading platform for shopping, payments, and banking in the GCC region, has secured a historic US$340 million in a Series C equity funding round, propelling it to the coveted status of the Kingdom's first homegrown fintech unicorn.
The Series C funding round was co-led by SNB Capital, a prominent regional financial institution, and Sanabil Investments, a wholly-owned company by the Public Investment Fund. Other participants included Shorooq Partners, Pinnacle Capital, Impulse, as well as existing investors like Coatue, Endeavor Catalyst, and Checkout.com. This funding round follows closely on the heels of a significant debt financing, bringing Tamara's total equity funding to US$500 million and debt financing to over US$400 million since its establishment in late 2020.
Tamara, operating in Saudi Arabia, the UAE, and Kuwait, boasts a user base of over 10 million, collaborates with more than 30,000 partner merchants, and reports a remarkable sixfold annual run rate revenue growth in less than two years. Established by three Saudi co-founders—Abdulmajeed Alsukhan, Turki Bin Zarah, and Abdulmohsen Al Babtain—Tamara was also among the first companies granted a permit to provide "Buy Now, Pay Later" services by the Saudi Central Bank.
Abdulmajeed Alsukhan, Co-founder, and CEO of Tamara, expressed his gratitude for the local ecosystem and regulators, stating, "Saudi Arabia deserves its place on the world stage for financial technology."
Tamara's vision aligns with the Kingdom's Vision 2030 objective of supporting fintech entrepreneurs, and the company's recent success is seen as a testament to the supportive regulatory environment provided by the Saudi Central Bank.
The Series C funding will further fuel Tamara's ambition to become a major player in shopping, payments, and banking. SNB Capital's Close-Ended Fintech Fund led the round, emphasising their commitment to supporting fintech infrastructure development in line with the Kingdom's Vision 2030.
Sanabil Investments, expressing confidence in Tamara's growth trajectory, highlighted their mission to empower visionary ideas. Tamara has recently removed late payment fees, reinforcing its commitment to Sharia principles, customer-centricity, and transparency.
Tamara's commerce-enabling platform facilitates high-intent shoppers, leading to successful co-marketing efforts and a seamless payment journey. Notable partners include global brands such as SHEIN, IKEA, Jarir, Noon, eXtra, and Farfetch, as well as local small and medium businesses.
With the fintech sector booming in the region, Tamara is well-positioned to capitalise on the rapid growth in Saudi Arabia and the broader GCC region. The Buy Now, Pay Later sector in Saudi Arabia has experienced exponential growth, with the number of users reaching 10 million in 2022, according to the SAMA Fintech 2022 report. Digital payment volumes are projected to grow by a 20 percent CAGR until 2025, reaching 13 billion transactions with a total value of US$170 billion.
Tamara's success underscores the flourishing fintech ecosystem in the region, with the company poised to play a pivotal role in shaping the future of financial services in Saudi Arabia and beyond.
