Saudi BNPL start-up Tamara expands lending capacity to $400m with Goldman Sachs
Saudi Arabian buy now, pay later (BNPL) start-up Tamara has secured an additional $250 million in debt financing, increasing its warehouse facility to $400 million.
The increase comprises of $200 million of senior debt arranged by Goldman Sachs, on top of the $150 million it secured with the US bank back in March.
Additionally, venture capital and debt fund Shorooq Partners will provide an additional $50 million mezzanine tranche for the facility.
The company says the new financing will support the “strong demand” for its flagship BNPL product, while it also plans to invest in new products and services.
Rajiv Shah, head of financing MENA at Goldman Sachs, says the financing gives “a timely boost to the marketplace”, while Shorooq Partners principal Nathan Kwon adds that it will “catalyse” the paytech’s growth, “bolstering its product and service portfolio”.
Founded in 2020 by CEO Abdulmajeed Alsukhan, managing director Turki Bin Zarah and head of payments Abdulmohsen Al Babtain, Tamara currently claims to have in excess of 9 million users and 26,000 merchant partners. The company secured $100 million in a Series B funding round in August 2022.
Backed by the Public Investment Fund’s (PIF) Sanabil Investments, the start-up has offices in the UAE, Egypt, Germany and Vietnam.