KSA-Based Startup Tamara Becomes The Newest Fintech Unicorn in the Kingdom With Its US$1 Billion Valuation

Fintech platform Tamara has made history by becoming Saudi Arabia’s newest fintech unicorn, achieving a valuation of US$1 billion after securing $340 million in a Series C equity funding round. The round was led by Public Investment Fund (PIF)-owned SNB Capital and financial company Sanabil Investments. Other investors such as Shorooq Partners, Pinnacle Capital, Impulse participated in the round, joining existing investors including Coatue, Endeavor Catalyst, and Checkout. com. With this transaction, Tamara has raised $500 million in equity funding and above $400M in debt financing since its inception.

 Founded in late 2020 by Saudi entrepreneurs Abdulmajeed Alsukhan, Turki Bin Zarah, and Abdulmohsen Al Babtain, Tamara was also one of the first companies to be granted a permit to provide buy-now-pay-later (BNPL) services by the Saudi Central Bank (SAMA). The platform offers a range of shopping, payment, and banking services, operating in Saudi Arabia, the UAE, Bahrain, and Kuwait. It has garnered more than 10 million users and over 30,000 partner merchants, reporting a six-fold increase in annual run rate revenue in less than two years. Abdulmajeed Alsukhan, co-founder and CEO of Tamara, stated, “Saudi Arabia deserves its place on the world stage for financial technology. Created by local entrepreneurs and nurtured by a supportive ecosystem and market regulators, we stand today, humbled and ambitious, ready for our leapfrog moment. This achievement is a testament to the ecosystem, our incredible team, investors, and the collaborative spirit that makes this region a great place for talent to flourish. As we aim to become a major player in shopping, payments, and banking, we remain grateful for the significant opportunity in this under penetrated and underserved landscape. Furthermore, SAMA has been instrumental in creating an environment that enables Saudi companies like Tamara to grow and innovate in the fintech sector.”

This funding will drive Tamara’s growth initiatives, including the development of new products and services and the expansion of its market presence. The company recently decided to remove late payment fees, highlighting its dedication to offering financial solutions that align with Sharia principles, customer centricity, and transparency.

A spokesperson from SNB Capital added, “Leading the Series C raise for Tamara through SNB Capital’s Closed- Ended Fintech Fund aligns with our objective to invest in companies achieving long-term capital appreciation. Fintech is a core investment sector for SNB Capital, aligned with the Kingdom’s Vision 2030 to support fintech entrepreneurs. As a Saudi unicorn, Tamara requires significant funding options, which SNB Capital is ideally positioned to provide, backing the development of fintech infrastructure to support further growth.”

A spokesperson from Sanabil Investments said, “Our continued investment in Tamara underscores our confidence in its remarkable growth trajectory. At Sanabil, we aim to empower visionary ideas into impactful realities, seeking innovations that address market demands while ensuring scalability and sustainability. In Tamara, we see a team with the potential to revolutionize financial services, not only within Saudi Arabia but also on a regional scale.”

BNPL is growing rapidly in Saudi Arabia, with the number of customers registered with a service increasing from 76,000 in 2020 to 3 million in 2021, and reaching 10 million in 2022, according to the SAMA Fintech 2022 report.