Following this announcement, Tamara will leverage the funds in order to develop new products and services, as well as go beyond the Buy Now, Pay Later (BNPL) services and target capabilities in shopping, payments, and banking solutions in the region of Saudi Arabia and across the GCC. The funding round was co-led by SNB Capital and Sanabil Investments, among existing investors such as Checkout.com, Endeavor Catalyst, and Coatue.
Currently, the Buy Now, Pay Later (BNPL) sector is developing in a rapid manner in the region of Saudi Arabia, with the number of clients who were registered with a service growing to 10 million in 2022, according to the SAMA Fintech 2022 report. This was estimated at nearly 30% of the population using BNPL, which increased the popularity of ecommerce.
In this ever-evolving market, the companies will focus on providing optimised solutions that address pressing market demands while also ensuring scalability and sustainability. At the same time, Tamara will focus on optimising customer satisfaction and overall experience by meeting their needs, preferences, and demands, as well as ensuring a compliant, transparent, and reliable financial journey for all clients.
In November 2023, Tamara secured USD 250 million in debt financing, a funding round which was led by Goldman Sachs and Shorooq Partners, aiming to optimise its BNPL products and to release new services. The facility consisted of an incremental up to USD 200 million of senior debt which was arranged by Goldman Sachs, as well as a USD 50 million mezzanine tranche, led by Shorooq Partners. According to the press release published at the time, this brought the total senior warehouse facility up to USD 400 million.
Tamara was expected to use the new investment in order to accelerate and improve the process of designing its new flagship BNPL product, as well as releasing capital for investments into a new suite of services.
Earlier in March 2023, Tamara secured a USD 150 million debt facility from Goldman Sachs, aiming to expand across its range of financial services and tools. The investment was also expected to be leveraged in the process of expanding multiple offices across the regions of Saudi Arabia, the United Arab Emirates, Egypt, Germany, and Vietnam.
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