Checkout.com leads $110m round for Saudi fintech Tamara

Checkout.com leads $110m round for Saudi fintech Tamara

Checkout.com is leading a $110m funding round for Saudi payments firm Tamara in one of the Middle East's largest-ever startup investments as demand booms for e-commerce and fintech solutions.

Proceeds of the Series A capital raise, which includes both equity and debt, will be used to bankroll Tamara's expansion across the Gulf markets by the end of this year and then the rest of the Middle East, according to a statement on Thursday.

The company raised $6m in seed funding at the start of this year and is predominantly active in Saudi Arabia and the neighbouring United Arab Emirates.

“Due to the pandemic, online retail and digital payments have reached mainstream consumers,” said Abdulmajeed Alsukhan, Tamara's co-founder and chief executive officer. “So today more than ever there's need for more inclusive and diverse payment options.”

Riyadh-based Tamara has been growing rapidly since it was founded last year, with its user base and transaction volumes soaring month after month. The firm offers its customers the chance to pay for their online purchases after 30 days or in installments, also known as the “buy now, pay later” model.

It predicts the global “buy now, pay later” sector could grow 400 per cent to reach $680bn in transaction