Saudi Arabia-based fintech platform Tamara has secured $340m in a Series C financing round, jointly led by SNB Capital and Sanabil Investments, to be the first local fintech unicorn in KSA.
SNB Capital is a regional financial institution, and Sanabil Investments is fully owned by the Public Investment Fund (PIF), a sovereign wealth fund of Saudi Arabia.
Existing investors Coatue, Endeavor Catalyst and Checkout.com, along with Shorooq Partners, Pinnacle Capital, and Impulse, among others participated in the funding round.
Tamara said that it is one of the largest fintech investments in the region, following the company’s additional debt financing last month, led by Goldman Sachs and Shorooq Partners.
With the current funding round, Tamara’s total equity investment reaches $500m, well above $400m debt financing since it was established in late 2020.
Tamara co-founder and CEO Abdulmajeed Alsukhan said: “This achievement is a testament to the ecosystem, to our incredible team, investors, and the collaborative spirit that makes this region a great place for talent to flourish.
“As we set our sights on becoming the next big giant in shopping, payments and banking we remain ever grateful for the significant opportunity in this underpenetrated and underserved banking and financial services landscape.
“Furthermore, The Saudi Central Bank (SAMA) has been instrumental in creating an enabling environment for Saudi companies like Tamara to grow and innovate in the Saudi fintech sector.”
Established in late 2020, Tamara is based in Saudi Arabia and operates in the UAE and Kuwait, with more than 10 million users, and more than 30,000 partner merchants.
The company works together with regional and global brands, such as SHEIN, IKEA, Jarir, Noon, eXtra and Farfetch, along with local small and medium businesses.
Recently, it has decided to remove late payment fees, to offer financial solutions in line with Sharia principles, customer centricity and transparency.
Tamara said that Saudi Arabia and the GCC region are experiencing rapid and unexpected growth, despite the challenging global macro economy.
The company was among the first few companies to secure a permit to provide BNPL services, from the Saudi Central Bank (SAMA).
BNPL is growing rapidly in Saudi Arabia, with around 30% of the population using BNPL, and the industry is driven by several factors, including the increasing popularity of e-commerce.
SNB Capital spokesperson said: “Leading on the Series C raise for Tamara through SNB Capital’s Close-Ended Fintech Fund aligns with one of our objectives to invest in single target companies achieving long-term capital appreciation.
“As a Saudi unicorn Tamara requires significant funding options which SNB Capital is ideally positioned to deliver, and backing the development of the fintech infrastructure which will support further growth.”
Sanabil Investments spokesperson said: “Our continued backing and investment in Tamara underscores our unwavering confidence in Tamara’s remarkable growth trajectory.
“At Sanabil, one of our missions is to empower visionary ideas, turning them into impactful realities. We constantly seek innovations that address pressing market demands while ensuring scalability and sustainability.”
