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Goldman backs fintech Tamara with USD 150 mln debt facility

Friday 17 March 2023 12:08 CET | News

Saudi-based fintech Tamara has secured a USD 150 million debt facility from Goldman Sachs to expand across its range of financial products.

 

Founded in 2021, Tamara has emerged as one of the Gulf region’s Buy Now, Pay Later companies, having now raised USD 366 million in debt and equity. It counts a subsidiary of Saudi Arabia’s sovereign wealth fund and Checkout.com among its investors.

Tamara receives a USD 150 million debt facility from Goldman Sachs

How will the funding be used?

Tamara will use Goldman’s USD 150 million ‘receivables warehouse facility’ — which it says is a first in the Middle East — to fund expansion across product lines in shopping, payments, and banking. The Riyadh-based startup has a customer base of 6 million and more than 350 employees spread across offices in Saudi Arabia, the United Arab Emirates, Egypt, Germany, and Vietnam. 

Tamara facilitates payments for thousands of merchants, including brands like IKEA and H&M. It continues to see significant potential for growth in the region, where credit card usage lags more mature markets.

Regionally, the firm competes with the likes of Dubai-based Tabby — which has also attracted significant foreign capital, including from investors such Sequoia Capital India. A USD 58 million funding round earlier in 2023 valued the startup at almost USD 700 million.

The funding lanscape

The Goldman facility comes at a time when startups around the world are battling headwinds including rising interest rates. The collapse of Silicon Valley Bank sent further shock-waves through the sector.

Tamara’s officials said that the fintech sector is undergoing a rapid transformation and has received significant global investment in recent years. The GCC, especially Saudi Arabia, continues to exhibit strong growth despite the global macroeconomic slowdown.


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Keywords: BNPL, funding, debt facility, expansion, fintech
Categories: Payments & Commerce
Companies: Goldman Sachs, Tamara
Countries: World
This article is part of category

Payments & Commerce

Goldman Sachs

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Tamara

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