Saudi BNPL Giant Tamara Bolsters Position with USD 400M Debt Financing for Expansion and Innovation
Founded in 2020 by Abdulmajeed Alsukhan, Turki Bin Zarah, and Abdulmohsen Al Babtain, Tamara claims over 9 million users and 26,000 merchant partners. The startup is backed by the Public Investment Fund’s Sanabil Investments and operates across the UAE, Egypt, Germany, and Vietnam. Stefan Marciniak, Tamara's CFO, underlined the significance of this funding in the context of a challenging economic climate, aiming to further develop their flagship BNPL product and invest in innovative services.
Tamara's growth aligns with the expanding Digital Payment market, projected to grow from USD 111.2 billion in 2023 to USD 193.7 billion by 2028, with a CAGR of 11.8%. This growth is driven by factors like the rise of e-commerce and the adoption of embedded payment platforms, offering convenience, security, and efficiency in online shopping. Despite challenges like the lack of global standards for cross-border payments and evolving cyber-attacks on digital payment systems, opportunities arise from the rapid decline in unbanked populations and the surge in digital payments. Tamara's expansion strategy, underpinned by the new financing, positions it to leverage these market dynamics and further cement its role as a leader in the competitive BNPL market
This move is timely, considering the global Digital Payment market's projected growth, driven by the rise in e-commerce and embedded payment platforms, which are becoming increasingly essential for online shopping and enhancing customer experiences. Moreover, the growing trend of contactless payments, offering ease and speed, aligns with Tamara's expansion objectives. However, Tamara must navigate challenges such as the evolving landscape of cybersecurity threats in digital payments and the complexities surrounding cross-border payments. The company's strategic growth initiatives are set to leverage the opportunities arising from the decreasing number of unbanked individuals globally, highlighting the potential for increased adoption of digital payments and contributing to financial inclusion efforts in the region.
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Digital Payment Market
Considering the global Digital Payment market's projected growth, driven by the rise in e-commerce and embedded payment platforms.
The growing trend of contactless payments, offering ease and speed, aligns with Tamara's expansion objectives.
