Key points:
- Tamara, a Saudi Arabian fintech startup, secures a $340m Series C funding round.
- Investment pushes the startup’s value to $1 billion, marking it as the country’s first fintech unicorn.
Tamara, a leading fintech firm in Saudi Arabia, has secured $340 million in a Series C equity funding round, pushing its valuation to $1 billion and making it Saudi Arabia’s first homegrown fintech unicorn. The funding round featured participation from co-lead investors SNB Capital, Sanabil Investments, Shorooq Partners, Pinnacle Capital and Impulse, as well as existing investors such as Coatue, Endeavor Catalyst, and Checkout.com.
The finance deal is one of the largest investments in a fintech firm in the region. Last month the company was also able to secure additional debt financing to upscale its warehouse facility up to $400 million, led by Goldman Sachs and Shorooq Partners. In total, since it was created in late 2020, Tamara has raised around $500 million in equity and more than $400 million in debt financing.
Headquartered in Saudi Arabia, Tamara operates in KSA, UAE and Kuwait and boasts more than 10 million users. It has a strong presence with over 30,000 partner merchants and reported six times annual run rate revenue growth in less than two years. This impressive growth has established Tamara as a strong regional player.
Abdulmajeed Alsukhan, Co-founder, and CEO of Tamara, stated that this achievement is a testament to the ecosystem, and commended the Saudi Central Bank for its part in aiding the growth and innovation of Saudi fintech firms such as Tamara. He also emphasized their focus on customer-centricity and transparency, noting the recent decision to remove late payment fees.
Tamara’s strong position in the market is evidenced by their partnerships with international brands such as SHEIN, IKEA, Jarir, Noon, eXtra, and Farfetch as well as local small and medium businesses. With over one-third of its users starting their shopping journey via the Tamara app, it provides a substantial return on advertising investment for partnered merchants.
As for the future, Tamara plans to continue capitalizing on the tremendous growth potential in the fintech sector across the region. The current lending penetration in Saudi Arabia stands at around 30%, leaving plenty of room for growth compared to mature markets like Europe, the US, or Australia, where figures range between 50% to 70%.
