Saudi fintech company Tamara has become the kingdom’s first fintech unicorn following its latest round of funding. The ‘buy now pay later’ platform raised $340 million in a Series C round, pushing its valuation past $1 billion. The funding round was co-led by SNB Capital and Sanabil Investments, among others. Key points include:
- Tamara’s Series C funding raised $340 million, making the fintech startup a unicorn with a valuation exceeding $1 billion.
- The latest funding makes Tamara one of the region’s largest investments in a fintech company, with total equity funding of $500 million and over $400 million in debt financing.
- The number of customers registered with a ‘buy now pay later’ service in Saudi Arabia has soared from 76,000 in 2020 to 10 million in 2021.
Founded in late 2020, Tamara offers both businesses and consumers the opportunity to facilitate transactions without immediate payment, allowing shoppers to make purchases and defer payment without interest for up to six months. This service has generated significant interest, with the number of users growing from 76,000 in 2020 to 10 million in 2021, representing approximately 30% of the population of Saudi Arabia.
According to the SAMA Fintech 2022 report, digital payment volumes in the country are expected to grow by 20% CAGR until 2025, accounting for 13 billion transactions with a total value of $170 billion. This trend demonstrates the increasing digitalization of financial services in the region and the potential growth opportunities for fintech startups such as Tamara.
With the latest round of funding, Tamara’s total equity funding has reached $500 million, and its debt financing has surpassed $400 million. “Saudi Arabia deserves its place on the world stage for financial technology,” said Abdulmajeed Alsukhan, co-founder and CEO of Tamara.
The successful fundraising of Tamara shows the potential of the fintech industry in the region and sets the stage for further development and innovation in this sector.
