Tamara, a Saudi Arabia-based buy now, pay later (BNPL) startup, has raises $100m in it Series B funding round, Reuters has reported.

A number of investors such as Sanabil Investments, which is owned by Saudi Arabia’s sovereign wealth fund Public Investment Fund (PIF), participated in the round.

Global investment manager Coatue as well as technology investor Shurooq Partners, co-investment provider Endeavor Catalyst, and current investor Checkout.com also joined the funding round.

Established in 2020 by Saudi entrepreneurs Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain, Tamara has so far secured $215m in funding.

The firm has forged collaboration with various companies such as IKEA and Saudi retailer Jarir as well as e-commerce providers SHEIN and NAMSHI.

Tamara aims to use the new capital to grow its presence in new regions as well as launch additional services and solutions.

It currently said to have more than three million active shoppers.

Tamara chief executive Abdulmajeed Alsukhan was quoted by Reuters as saying: “We believe the region has a different situation today than globally. The region is thriving with high oil prices.

“We want to make sure our customers find the right products that suit them and find amazing deals.”

Alsukhan further noted that Tamara is having discussions with homegrown, regional and global lenders to obtain debt financing, a new area for the local banks that wish to enter the budding sector.

The company intends to earn profit next year and plans to file for listing in Saudi Arabia in the future. The company also aims to add a second listing in other global markets including the UK.

Commenting on the low rate of interests in the BNPL sector, Alsukhan added: “We believe that the interest rate as of today is still manageable.

“However, there is no doubt that in such a business that if interest rates goes way beyond where it is today, then it’s definitely problematic to all.”