Hadeel Al Sayegh
DUBAI (Reuters) – Gulf region buy now pay later (BNPL) company Tamara said on Monday it has raised $100 100 The $10,000 second round came from investors including Sanabil Investments, which is owned by Saudi Arabia’s sovereign wealth fund PIF. market and launch new services and products. It did not specify which markets.
“We think the region today is different from the global one. The region is booming because of high oil prices,” Chief Executive Abdulmajeed Alsukhan told Reuters.
“We want to make sure our customers find the right products for them and find great deals.”
With over 3 million active shoppers, Tamara is Gulf Arabian One of the largest BNPL suppliers in the region and competes with companies including Dubai-based Tabby.
Demand for BNPL, which allows consumers to order and pick up goods without immediate payment, has risen in recent years due to the increase in online shopping.
The provider pays the merchant immediately, which is then amortized by the consumer, usually earning revenue only from transaction fees charged to the merchant.
Tamara was established in 2020 by Saudi entrepreneurs Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain.
So far, it has raised 215 million dollars and has partnered with companies like IKEA and Saudi retailers Jarir, in addition to e-commerce platform SHEIN and NAMSHI.
Additional investors participating in the latest funding round include global investment manager Coatue, Gulf technology investor Shurooq Partners, co-investment vehicle Endeavor Catalyst and existing investor Checkout.com, a global payments solution company.
Tamara is also in talks with local, regional and international lenders for debt financing, a new attempt by banks in the region that are still learning from the nascent industry, Alsukhan said.
is expected to be profitable next year and plans to list in Saudi Arabia in the future, which could include a second listing in other markets such as the UK, he said.
BNPL’s business model emerged during a period of very low interest rates, but the prospect of continued increases in interest rates could spell trouble for the industry.
“We think rates are still manageable as of today,” Alsukhan said. “However, there is no doubt that in a business like this, if interest rates are much higher than they are today, then it must be a problem for everyone.”
