In a major boost for Saudi Arabia’s Buy Now, Pay Later (BNPL) market, Tabby and Tamara reported a combined revenue of SAR 535.4 million in Q1 2025, marking a 39% year-over-year growth.
This surge is primarily driven by merchant commission income, which accounts for 90% of total revenue.
Tabby posted a remarkable SAR 65.2 million in net profit—a 553% YoY increase—on revenues of SAR 319.4 million, supported by its strong performance in collecting merchant commissions. Other sources, such as customer payment extensions, contributed SAR 16.2 million (5% of total Q1 revenue).
The company is preparing for an IPO in the Saudi stock market, collaborating with banks and law firms to assess readiness. As of its latest investment round in early 2025, Tabby was valued at $3.3 billion (SAR 12.4 billion), up from $1.5 billion in late 2023.
Tamara, meanwhile, achieved profitability for the first time, posting SAR 25.8 million in net profit, a turnaround from a SAR 62.1 million net loss in Q1 2024. Its revenue reached SAR 215.9 million, with 40% YoY growth, also largely driven by merchant commissions.
Tamara’s valuation reached $1 billion (SAR 3.75 billion) in late 2023, making it the first Saudi fintech unicorn, backed by investors including Sanabil Investments, fully owned by the Public Investment Fund (PIF).
The BNPL sector in Saudi Arabia is witnessing unprecedented growth, with daily transactions doubling to 120,000 in 2024, totaling 43.3 million annually (up 178%), and SAR 26.6 billion in goods sold (up 206%).
The youth demographic (ages 20–30) represents 37% of the 13.2 million users, underscoring the model’s popularity and expanding market adoption.
