Dubai: The ‘buy now pay later’ consumer spending trend has hit Saudi Arabia in a big way. A BNPY platform, Tamara, has raised $110 million from its Series A round, which is the largest such in the Middle East and North Africa to date.
The investments were led by Checkout.com, and will see Tamara extend its reach in the other Gulf markets this year itself. Tamara, founded last year, was the first BNPL firm in the Kingdom to be enrolled in Saudi Central Bank’s Sandbox programme. It closed a $6 million seed funding round in January, also the largest such in that market.
The buy now pay later schemes allow shoppers to buy small- and mid-ticket items on monthly instalments and not have to pay interest on the balance. This category is expected to grow 400 per cent and reach $680 billion in transaction volume globally by 2025.
Tamara's solution is accessible via direct API integration or plugins and offers consumers new ways to pay online - either splitting balances over three payments or paying 30 days later.
“The region and the world need payment solutions that are transparent and customer-oriented,” said Abdulmajeed Alsukhan, Tamara’s Co-founder and CEO. “We offer our customers an alternative to credit cards and cash-on-delivery, which enhances their shopping experience. This transaction is only the beginning of our journey, and a great sign that we are on the right track.”
The $110 million raised represents a mix of debt and equity.