Tamara: Pioneering Fintech in the GCC
Tamara, the leading platform for shopping, payments, and banking in the Gulf Cooperation Council (GCC) region, has recently made headlines by securing a historic US$340 million in a Series C equity funding round. This remarkable achievement has catapulted Tamara to the status of the Kingdom’s first homegrown fintech unicorn, marking a significant milestone in the region’s financial technology landscape.
A Landmark Funding Round
The Series C funding round was co-led by SNB Capital, a prominent regional financial institution, and Sanabil Investments, a wholly-owned company of the Public Investment Fund. This round also saw participation from notable investors such as Shorooq Partners, Pinnacle Capital, and Impulse, alongside existing backers like Coatue, Endeavor Catalyst, and Checkout.com. Following a substantial debt financing, Tamara’s total equity funding now stands at US$500 million, with debt financing exceeding US$400 million since its inception in late 2020.
Rapid Growth and User Base
Operating in Saudi Arabia, the UAE, and Kuwait, Tamara has quickly amassed a user base of over 10 million. The platform collaborates with more than 30,000 partner merchants and has reported an impressive sixfold annual run rate revenue growth in less than two years. Founded by three visionary Saudi entrepreneurs—Abdulmajeed Alsukhan, Turki Bin Zarah, and Abdulmohsen Al Babtain—Tamara was among the first companies to receive a permit from the Saudi Central Bank to offer "Buy Now, Pay Later" services.
Vision and Regulatory Support
Abdulmajeed Alsukhan, Co-founder and CEO of Tamara, expressed his gratitude for the supportive local ecosystem and regulatory framework, stating, "Saudi Arabia deserves its place on the world stage for financial technology." This sentiment reflects Tamara’s alignment with the Kingdom’s Vision 2030, which aims to bolster fintech entrepreneurship and innovation.
Fueling Future Ambitions
The recent Series C funding will further propel Tamara’s ambitions to become a major player in the shopping, payments, and banking sectors. SNB Capital’s Close-Ended Fintech Fund led the round, underscoring their commitment to developing fintech infrastructure in line with the Kingdom’s Vision 2030 objectives. Sanabil Investments has also expressed confidence in Tamara’s growth trajectory, emphasizing their mission to empower visionary ideas.
Commitment to Customer-Centricity
Tamara has recently taken steps to enhance its customer experience by removing late payment fees, reinforcing its commitment to Sharia principles, transparency, and customer-centricity. This move is indicative of the company’s dedication to creating a seamless and user-friendly payment journey for its customers.
Commerce-Enabling Platform
Tamara’s platform is designed to facilitate high-intent shoppers, leading to successful co-marketing efforts and a smooth payment process. The company has partnered with global brands such as SHEIN, IKEA, Jarir, Noon, eXtra, and Farfetch, as well as local small and medium enterprises, creating a diverse ecosystem that caters to various consumer needs.
Booming Fintech Sector
The fintech sector in the GCC is experiencing rapid growth, and Tamara is well-positioned to capitalize on this momentum. The "Buy Now, Pay Later" sector in Saudi Arabia has seen exponential growth, with user numbers reaching 10 million in 2022, according to the SAMA Fintech 2022 report. Furthermore, digital payment volumes are projected to grow at a 20 percent compound annual growth rate (CAGR) until 2025, potentially reaching 13 billion transactions valued at US$170 billion.
Shaping the Future of Financial Services
Tamara’s success is a testament to the flourishing fintech ecosystem in the region. As the company continues to innovate and expand, it is poised to play a pivotal role in shaping the future of financial services in Saudi Arabia and beyond. With a strong foundation and a clear vision, Tamara is set to redefine the landscape of shopping, payments, and banking in the GCC.