Tamara, a Saudi-based BNPL platform, has raised $100M in a Series B round from Sanabil Investments, along with international investment manager Coatue, Gulf technology investor Shorooq Partners, co-investment vehicle Endeavor Catalyst, and existing investor Checkout.com, a global payment solutions company.
Saudi entrepreneurs Turki Bin Zarah, Abdulmohsen Albabtain, and Abdulmajeed Alsukhan founded Tamara in 2020. With this round, the business has now secured more than $215 million in funding.
A growth in online shopping has increased demand for BNPL, which enable customers to purchase and take products without paying straight away. The provider, whom typically solely generates revenue from transaction fees paid by the merchant, immediately pays the merchant and is reimbursed by the consumer in installments.
Chief Executive Abdulmajeed Alsukhan stated, “We believe the region has a different situation today than globally. The region is thriving with high oil prices, and we want to make sure our customers find the right products that suit them and find amazing deals.”
The capital will enable the Saudi startup expand its reach and roll out new products and services. The BNPL business model was developed during a period of extremely low interest rates, but the industry may face difficulties if interest rates continue to rise steadily.
Alsukhan shared, “We believe that the interest rate as of today is still manageable. However, there is no doubt that in such a business that if interest rates goes way beyond where it is today, then it’s definitely problematic to all.”