is leading a $110 million funding round for Saudi payments firm Tamara in one of the Middle Easts 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 Tamaras expansion across the Gulf markets by the end of this year and then the rest of the Middle East, according to a statement Thursday. The company raised $6 million in seed funding at the start of this year and is predominantly active in Saudi Arabia and the neighboring United Arab Emirates.

Due to the pandemic, online retail and digital payments have reached mainstream consumers, said Abdulmajeed Alsukhan, Tamaras co-founder and chief executive officer. So today more than ever theres 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% to reach $680 billion in transaction volumes by 2025. Companies like Tamara make money by charging merchants, who offer their own customers the flexibility to pay later for their online shopping. Nearly Triples Value to $15 Billion After Funding

London-based became one of Europes most valuable startups earlier this year after closing a $450 million financing round led by

Tiger Global Management, which nearly tripled its valuation to $15 billion.

Our investment in Tamara will help the team realize their vision and expand rapidly, driving greater conversions for retailers and offer more flexibility for consumers, said Sebastian Reis, executive vice president at

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