Saudi Arabian buy now pay later (BNPL) firm Tamara has claimed the crown of being the kingdom’s first homegrown unicorn startup after it reached a $1 billion valuation. 

The firm has raised $340 million in series C funding led by SNB Capital and the PIF-owned Sanabil Investments, saying it plans to use the funds on new products and services in shopping, paymentsand banking services in the kingdom and the GCC region. 

A spokesman for Sanabil Investments said Tamara had assembled a team that has the potential to revolutionise financial services in Saudi Arabia and on a regional scale.

Shorooq Partners, Pinnacle Capital, Impulse and others joined existing investors such as Coatue, Endeavor Catalyst and Checkout.com in the round, Tamara said in a statement.

The funding comes hard on the heels of Tamara’s $400 million debt financing announced last month.

The company, established in late 2020, operates in the kingdom, the UAE and Kuwait and says it has 10 million users, over 30,000 partner merchants and that it has reported six times annual run rate revenue growth in less than two years. 

It was founded by three Saudis Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Al Babtain.

A spokesperson for SNB Capital said: “Leading on the Series C raise for Tamara through SNB Capital's Close-Ended Fintech Fund aligns with one of our objectives to invest in single target companies achieving long-term capital appreciation. 

“Fintech is one of the core investment sectors in SNB Capital’s strategic portfolio and is aligned with the kingdom’s Vision 2030 objective of supporting fintech entrepreneurs at every stage of their development. 

Tamara said it recently decided to remove late payment fees to align with Sharia principles, customer-centricity and transparency. 

(Reporting by Imogen Lillywhite; editing by Seban Scaria)

imogen.lillywhite@lseg.com