Tamara has secured $150 million in debt financing for its shopping and payments platform.
This company serves consumers in the region of the Gulf Cooperation Council (GCC). The company will use the Goldman Sachs accounts receivable warehouse to finance Buy Now, Pay Later (BNPL) products and scale up its operations.
The co-founder and CEO of Tamara, Abdulmajid Alsukhan, said that this transaction is the first of its kind in the Persian Gulf countries. He also called the provision of debt financing evidence that the company’s activities are effective and have confidence among the world’s leading financial institutions. The head of the firm separately noted that the deal was concluded in a difficult macroeconomic climate.
Over the past two years, a rapid increase in the volume of digital transactions has been recorded in the Persian Gulf region. This trend is explained by the expansion of the use of smartphones, the active introduction of fintech solutions, and the gradual transition from cash to digital financial operations.
Mohammad Imtiyaz, head of Business Development at Amazon Payment Services, says that online platforms need payment service providers that provide uninterrupted infrastructure in addition to added value by increasing conversion when placing an order with a wider selection of available payment options, such as BNPL and installments.
In October 2021, Tabby’s CEO and co-founder Hosam Arab announced the explosive growth of BNPL’s popularity in the financial services markets of the Middle East and North Africa. He says that this popularity is due to the desire of consumers to postpone payments for purchases and save cash for as long as possible.
Tamara was founded in 2020. The company currently serves 6 million consumers in Saudi Arabia, Bahrain, Kuwait, and the United Arab Emirates (UAE). The company cooperates with 15 thousand of regional and international brands. Shortly, the firm intends to cover other aspects of purchases, payments, and banking.
The company has demonstrated the ability to scale a complex B2B and B2C2C and BNPL business model, but this is just the beginning. The firm is seeing more demand from customers and is ready to work to meet it.
As we have reported earlier, Sandbox Banking Secures $4.3 Million in Seed Financing.