Saudi Arabia: Tamara, a Saudi Arabia-based Buy-Now-Pay-Later platform has secured a $110M Series A funding round led by Checkout.com.
Founded in 2020, by serial entrepreneur Abdulmajeed Alsukhan and his partners Turki Bin Zarah and Abdulmohsen Albabtain, Tamara was the first BNPL firm to be enrolled in the Saudi Central Bank (SAMA)’s Sandbox program. Since then, it closed a round of $6M in Seed funding in January 2021, which was also considered the largest Seed round in Saudi Arabia, five months after its official launch in September 2020.
The startup has quickly established itself as a market leader in the Kingdom and successfully landed some of the most popular brands in the country such as SACO, Whites, Nejree, and Nice One. Tamara has also expanded its services to the UAE, with prominent partners such as Namshi and Floward. Tamara was also able to launch its mobile consumer app along with its in-store service with multiple local partners.
Abdulmajeed Alsukhan, Tamara’s Co-founder and CEO mentioned: “Tamara was born to make a change. The region and the world need payment solutions that are transparent and customer-oriented. At Tamara, we offer our customers an alternative to credit cards and Cash on Delivery (COD), which enhances their shopping experience. Our solution also increases our merchant partners’ efficiency as well as their customer satisfaction. This transaction is only the beginning of our journey and a great sign that we are on the right track. We are proud to have the trust of such an investor and we will continue expanding our products to transform the payments industry in the region.”
Sebastian Reis, Executive Vice President at Checkout.com commented: “As the partner of choice for the region’s leading E-commerce merchants, Checkout.com is always on the lookout for ways to enhance the ecosystem. Tamara has rapidly proven itself to be a natural leader in the BNPL space. Our investment in Tamara will help the team realize their vision and expand rapidly, driving greater conversions for retailers and offer more flexibility for consumers.”
Visa estimates that the E-commerce sector in the MENA region will be valued at $49bn by as soon as 2022. Tamara is well-positioned to tap the rapidly growing Buy Now Pay Later segment in MENA. Its Shariah-compliant offering is used by merchants to increase sales revenue, whilst 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.
Tamara plans on using the investment to expedite its expansion across the GCC by the end of 2021 and the greater region, scale its team, and fund the distribution of its BNPL product.