Saudi Arabia-based buy now pay later (BNPL) startup Tamara has raised $110m in both debt and equity in its Series A round led by British payment firm Checkout.com.
The BNPL firm will use the new capital to accelerate its expansion in the GCC region by the end of the year and the greater region after that time.
Tamara is claimed to be the first BNPL player to be enrolled in the Saudi Central Bank (SAMA)’s Sandbox programme.
Following its launch last September, the firm raised $6m in a seed funding round this January.
Tamara’s merchant base in Saudi includes SACO, Whites, Nejree, and Nice One. The firm expanded its services to the UAE in tie-up with companies including Namshi and Floward.
In addition to its expansion plans, the latest funding will enable the firm to expand its team and support the distribution of its BNPL offering.
Tamara co-founder and CEO Abdulmajeed Alsukhan said: “At Tamara, we offer our customers an alternative to credit cards and Cash on Delivery (COD), which enhances their shopping experience. Our solution also increases our merchant partners’ efficiency as well as their customer satisfaction.
“This transaction is only the beginning of our journey, and a great sign that we are on the right track. We are proud to have the trust of such an investor and we will continue expanding our products to transform the payments industry in the region.”
Checkout.com executive vice-president Sebastian Reis commented: “Our investment in Tamara will help the team realise their vision and expand rapidly, driving greater conversions for retailers and offer more flexibility for consumers.”
In January this year, Checkout.com closed a $450m Series C funding round at a post-money valuation of $15bn.