Saudi Arabia-based fintech Tamara has secured up to $250 million in additional debt financing, bringing its total warehouse facility to up to $400 million.

The shopping and payments platform said the financing will support its demand for its flagship BNPL product and release capital for investments into new products and services.

The facility consists up to $200 million of senior debt arranged by Goldman Sachs, bringing the total senior warehouse facility to up to $350 million, plus a further $50 million mezzanine tranche led by Shorooq Partners.

Growing popularity of BNPL

The latest financing comes with BNPL services in Saudi Arabia rapidly gaining traction. While credit/debit card use is still the most prevalent payment method across ecommerce in the Middle East, a recent survey from online retail management company Uplo revealed that BNPL is continuing to grow in popularity, now accounting for more than 23% of ecommerce sales.

The Saudi Central Bank (SAMA) granted permits to both Spotii and Madfu, in May, to provide Buy Now Pay Later (BNPL) services to customers wishing to purchase products or services from merchants without incurring term financing cost. SAMA announced a further decision, in July, to give Tabby a license, bringing the total number of authorised companies offering BNPL solutions in the country to five.

Speaking on the most recent investment, Stefan Marciniak, CFO, Tamara, said: “In a challenging economic climate, we are grateful to Goldman Sachs and Shorooq Partners for their support. These funds will catapult us forward, enabling us to further develop our flagship BNPL product, and invest in new, innovative products and services, which will further strengthen our position as a leader in the industry.”

Rajiv Shah, Head of Financing Middle East and North Africa, Goldman Sachs, added: “GS is pleased to support Tamara with this additional debt financing in this nascent sector and provide the company with the flexibility needed to expand their product and service offerings, giving a timely boost to the marketplace.”

Tamara was founded by serial entrepreneur Abdulmajeed Alsukhan along with his partners Turki Bin Zarah and Abdulmohsen Al Babtain. It currently has over 500 employees and operates out of its headquarters in Riyadh, Saudi Arabia while it also has offices in the UAE, Egypt, Germany, and Vietnam.

The Company is backed by Sanabil Investments, a wholly owned company by the Public Investment Fund (PIF), Checkout.com, Coatue, Shorooq Partners, and Endeavor Catalyst among others.

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