The investment comes as the largest ever raised by a Saudi startup and the largest Series A round raised by a MENA startup.
Entrepreneur Abdulmajeed Alsukhan, along with partners Turki Bin Zarah and Abdulmohsen Albabtain, launched Tamara in 2020 and it immediately became the first BNPL firm to be enrolled in the Saudi Central Bank (SAMA)’s Sandbox program. Since then, the platform established considerable footing in the market, closing a round of $6 million in seed funding in January 2021 five months after its official launch in September 2020. As a result, Tamara was then able to launch its app and in-store service with multiple local partners.
Saudi Arabian Buy-Now-Pay-Later platform, Tamara, has announced a $110 million Series A investment, in what appears to be the largest funding round of its kind in the region. The round was led by the UK’s Checkout.com and investment funds will be used to fuel expansion across the GCC by the end of 2021 and the greater MENA region thereafter.
Tamara’s Sharia’a-compliant offering is used to increase sales revenue, while also 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.
“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,” Sebastian Reis, Executive Vice President at Checkout.com, said. “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.”
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.