In a move to fortify its position in the Buy Now Pay Later (BNPL) market, Tamara, a Saudi-based shopping and payments platform, has secured an additional $250m in debt financing. The funds will be used to support the demand for its flagship BNPL product and to fuel investments into new products and services.
Founded in 2020 and headquartered in Saudi Arabia, Tamara has swiftly become a regional powerhouse, with its platform gaining traction across the Gulf region. Boasting a user base exceeding 9m and more than 26,000 partner merchants, including retail giants such as SHIEN, IKEA and H&M.
This recent financing follows Tamara’s earlier funding milestones. It secured $6m in seed funding in 2021, followed by $110m in its series A round, and an additional $100m in series B equity last year.
Stefan Marciniak, chief financial officer at Tamara, expressed his satisfaction with the debt financing, emphasising its reflection on the company’s operational performance and future growth outlook. “In a challenging economic climate, we are grateful to Goldman Sachs and Shorooq Partners for their support,” he added.
Goldman Sachs, at the forefront of this financing, views its support as a means to empower Tamara in a “nascent sector”. Rajiv Shah, head of financing Middle East and North Africa at Goldman Sachs, said: “We are pleased to provide the company with the flexibility needed to expand their product and service offerings, giving a timely boost to the marketplace.”
Nathan Kwon, principal at Shorooq Partners, said the company is keen to support the local Saudi fintech ecosystem and pleased to be strengthening its partnership with Tamara.
He added: “This financing will catalyse their growth, bolstering their product and service portfolio. The region is poised for remarkable progress, and we are excited to be a part of it.”