Tamara becomes first Saudi fintech unicorn with $340m Series C funding
In a historic move, Tamara, the leading fintech platform in Saudi Arabia and the GCC region, has become the Kingdom’s first homegrown fintech unicorn. This remarkable achievement comes with the completion of a $340 million Series C equity funding round, marking a significant moment in the region’s financial technology sector.
Record-Breaking Series C Funding Led by SNB Capital and Sanabil Investments
The funding round, co-led by regional financial giant SNB Capital and Sanabil Investments, a company wholly owned by the Public Investment Fund (PIF), has placed Tamara at the forefront of the fintech revolution. The round saw participation from notable investors like Shorooq Partners, Pinnacle Capital, Impulse, and others, including existing backers like Coatue, Endeavor Catalyst, and Checkout.com. This investment is one of the largest in a fintech company in the region, following Tamara’s recent debt financing increase to $400 million, led by Goldman Sachs and Shorooq Partners.
Historic Funding Achievement for Tamara: Leading the Fintech Revolution in Saudi Arabia
Tamara’s Exponential Growth and Regional Impact
Established in late 2020 by Saudi co-founders Abdulmajeed Alsukhan, Turki Bin Zarah, and Abdulmohsen Al Babtain, Tamara has experienced rapid growth. Operating in Saudi Arabia, UAE, and Kuwait, the platform boasts over 10 million users and partners with over 30,000 merchants. It reported a sixfold increase in annual run rate revenue in under two years. As one of the first companies to receive a permit from the Saudi Central Bank (SAMA) for BNPL services, Tamara has been instrumental in shaping the regional fintech landscape.
Statements from Tamara and Investment Partners
Abdulmajeed Alsukhan, Co-founder, and CEO of Tamara, emphasized Saudi Arabia’s significant role in the global financial technology scene. He expressed gratitude for the supportive ecosystem and market regulators that have fueled Tamara’s growth. A spokesperson from SNB Capital highlighted their strategic investment in Tamara, aligning with the Kingdom’s Vision 2030 goals. Sanabil Investments also reiterated their confidence in Tamara’s growth trajectory and its potential to revolutionize financial services in the region.
Tamara’s Customer-Centric Innovations and Partner Success
Tamara has recently decided to remove late payment fees, aligning its services with Sharia principles and focusing on customer satisfaction. Its offerings have enabled a surge in high-intent shoppers for its partners, including global brands like SHEIN, IKEA, Jarir, Noon, eXtra, and Farfetch, as well as local SMEs. This approach has led to a significant increase in advertising spend returns for its partner merchants.
Growth Potential in Saudi Arabia and the GCC Region
The fintech sector in Saudi Arabia and the GCC is experiencing rapid growth, with substantial opportunities in the relatively untapped banking and financial services landscape. The BNPL segment, in particular, has seen exponential growth, with digital payment volumes expected to increase significantly by 2025.
Conclusion:
Tamara’s journey to becoming Saudi Arabia’s first fintech unicorn is a significant milestone, highlighting the region’s potential in the global fintech landscape. This achievement reflects the Kingdom’s commitment to fostering innovation and supports the broader goals of Saudi Vision 2030.