Spare raised $3 M to spearhead innovation in open banking across the Middle East
The $3 million funding round led by Vision Ventures, with participation from Wa’ed Ventures, Seedra Ventures, international investment firm 500 Global, and notable angel investors, was recently closed, according to Spare, a Bahrain-based provider of innovative open banking services.
Spare was established by Dalal Alrayes and Saurabh Shah. It specializes in offering cutting-edge Open Banking solutions for businesses and conducts business in Saudi Arabia, Kuwait, and Bahrain. Through Open Banking, the region’s financial institutions will be able to innovate and provide financial solutions and services to customers more quickly and easily than in the past.
“We carefully select our investments in technology startups. Spare stands out as a unique combination of outstanding team experience with a huge market opportunity in the region. We are excited to back such teams to build the next cycle of innovation in fintech infrastructure services such as Open Banking,” remarked Kais Al-Essa, Founding Partner and CEO at Vision Ventures.
“Open banking has been the backbone of financial innovation, and with the global market anticipated to surpass $43 billion by 2026, Spare is well-positioned to expand the Middle East’s open banking revolution,” said Muhammed Zeeshan, Chief Investment Officer at Wa’ed Ventures.
Due to the growth of fintechs and a changing regulatory environment, the MENA region is keeping up with the global open banking market, which is expected to reach a compound annual growth rate (CAGR) of 24.4%. To increase competition and improve customer experiences, central banks in the Middle East and North Africa (MENA) have either announced or detailed plans for frameworks that will advance open banking. Open banking has a great deal of potential to thrive in MENA, as evidenced by the rapidly expanding fintech sector and the general trend of digital transformation across industries.
Spare’s funding round demonstrates both its early success and the possibility of open banking giving customers and companies greater control over their financial information.
“Open banking isn’t solely about technological advancement; it’s about fostering a secure, accessible, and collaborative financial ecosystem. This approach brings together banks, businesses, and consumers, enhancing how they connect and transact, ultimately elevating the region’s financial services,” stated Dalal Alrayes, co-founder and CEO of Spare.
The funds will primarily be used for operations in Saudi Arabia, marketing, and hiring new personnel.
Today, Spare provides services to a range of forward-thinking companies in Saudi Arabia, such as EFMs, Buy Now Pay Later Fintechs, and top traditional lenders. Spare intends to grow both its footprint and its offerings, and as the open banking industry develops, it will play a major role in constructing the vital infrastructure needed for the fintech revolution in the area.
