Saudi Arabian start-up Tamara recently secured an up to USD 2.4 billion financing package from backers, including Goldman Sachs, Citi, and Apollo funds. This will help the fintech company expand its credit and payment products. The Shariah-compliant package, which will refinance and increase a previous $500 million facility, also includes an initial USD 1.4 billion, with a further USD 1 billion available for three years, pending further approvals.
The asset-backed facility will increase Tamara’s lending power and help the platform grow well beyond its current 20 million customers. Speaking about Tamara, the start-up has already created a niche in the Gulf region’s financial space, especially with buy-now-pay-later payment systems.
The start-up reached a valuation of USD 1 billion in late 2023 after a USD 340 million Series C funding round in which investors, including SNB Capital and Sanabil Investments, owned by Saudi Arabia’s sovereign wealth fund PIF, participated.
Fuelling Saudi’s Entrepreneurial Spirit
Tamara began its journey as a “Buy Now Pay Later” service before transforming into a full financial lifestyle platform. Now, in addition to supporting people’s daily lives by offering a fair, transparent, and Sharia-compliant payment experience (with no late fees), the start-up is partnering with businesses of all sizes — from local startups to global brands — to boost customer loyalty and drive growth through a frictionless payment journey.
Millions of users across Saudi Arabia, the UAE, Bahrain, and Kuwait trust Tamara to pay their way at SHEIN, IKEA, Farfetch, Jarir, Noon, and hundreds more.
Tamara’s rise to fame has been driven by its BNPL service. The fully Sharia-compliant “Pay Later” service allows users to shop now and pay later in instalments, with no late fees. Gulf residents can shop from over 26,000 stores and discover exclusive deals on their favourite brands.
Shoppers also get to take control of their money by tracking every payment, managing their plans, and paying over time in up to 24 months, all through one powerful app. To sweeten the deal further, the start-up charges absolutely no late fees on customer payments.
When it comes to giving its customers an all-around shopping experience, Tamara has put 26,000 brands under one roof, in addition to personalising exclusive deals for Gulf shoppers. Many of these stores offer exclusive offers and discounts to Tamara customers, primarily via the “Farah Discounts Programme.”
Let’s talk about Tamara’s “Buyer Protection Programme,” which ensures its customers’ shopping experiences remain in safe hands. If a customer doesn’t get their order on time, the start-up helps track it down or issues a refund if needed. If the buyer receives a defective product or one different from what was expected, or if the refund or cancellation request hasn’t been processed by the store, Tamara steps in to ensure things are sorted smoothly.
Promoting the concept of “healthy shopping,” Tamara’s credit score gives shoppers an understanding of how “creditworthy” they are (how likely they are to pay off their loans on time). The credit score gauges the risk in lending shoppers money. However, the good news is that early payments only boost and ultimately unlock higher spending power for shoppers.
Solutions For Partner Businesses As Well
“Tamara Business” has emerged as a seamless payment processing system built on simplicity. Since customers get to split their purchases into up to 24 months, partner businesses are paid upfront. Whether online, in-store, via QR, saved cards, Mada (the national payment scheme of Saudi Arabia), Apple Pay, or one-click flow, the start-up provides diverse payment options for businesses in the Kingdom to ensure customers and brands connect seamlessly.
Through Tamara, brands like Amazon, Shein, AliExpress, Pan Home, and IKEA have seen a 50% increase in average order value, 50% more repeat purchases, a 12% increase in customer acquisition rate, more than 15 times ROI (Return on Investment) on marketing spend, a 50% reduction in cash on delivery, a 20% reduction in refunds, and a 25% decrease in customer acquisition cost.
While businesses are accepting, processing, and settling every payment securely, they are also turning high-intent browsers into buyers with smart marketing tools and exclusive discounts, all through Tamara’s financial platform.
Through its advertisement service, Tamara is also helping brands grow and engage with their customers at scale. The start-up claims to have a pool of 11 million-plus high-intent shoppers (consumers actively looking to make a purchase, rather than just browsing or researching). Through Tamara’s digital platform, brands can engage with these customers at scale, with perks such as showcasing their brand through unique ad placements on Tamara’s app and a guaranteed 25% sales increase.
Tamara helps brands precisely target their campaigns to the right audience by leveraging advanced targeting tools to reach shoppers based on factors such as interests, purchase behaviour, and demographics. The ads are served to highly qualified leads, maximising businesses’ return on ad spend every single time.
The Revibe Success Story
Established in 2022, UAE-based Revibe set out to create trust in the Gulf region’s second-hand electronics market. The start-up’s vision was to create a reliable platform where customers could confidently purchase refurbished and pre-loved electronic devices.
Three years down the line, Revibe is now known for its dedication to fighting the menace of “electronic waste” by offering refurbished and pre-loved devices. By extending the lifespan of these gadgets, the start-up mitigates environmental impact and provides customers with budget-friendly options without compromising on quality, all while promoting the concept of tech accessibility for all.
However, the journey wasn’t smooth, as Revibe encountered the common obstacle of cart abandonment, particularly with high-value electronics, stemming from consumer hesitations. The start-up urgently needed an advertising solution to drive traffic, reduce cart abandonment, and increase brand recognition.
“Tamara Ads emerged as the ideal remedy for Revibe’s challenges. By utilising Farah Discounts, which focuses on discount-led promotions and targeted audience engagement, Revibe effectively reached potential customers while also elevating their brand profile. Premium placements on Tamara’s platform, including Sponsored Store spots and Sponsored Product listings, further boosted their visibility,” the start-up noted.
The collaboration between Revibe and Tamara yielded remarkable outcomes, including a 33% order uplift, a 54% reduction in cost per order, and more than three million app impressions.