Spare Closes $3 Million Funding Round to Expand Open Banking Services in the Middle East
Spare, a leader in providing open banking services, announced today the closing of a $3 million funding round led by Vision Ventures, with participation from Wa’ed Ventures, Seedra Ventures, the global investment firm 500 Global, and prominent angel investors.
Founded by Dalal Alrayes and Saurabh Shah, Spare operates in Saudi Arabia, Kuwait, and Bahrain, focusing on delivering advanced open banking solutions for businesses. Open banking is set to unlock innovations in financial institutions in the region, making financial solutions and services more accessible and faster than ever before.
Kais Al-Essa, Founding Partner and CEO at Vision Ventures, commented, “We carefully select our investments in technology startups. Spare stands out as a unique combination of an outstanding team experience with a huge market opportunity in the region. We are excited to support such teams to build the next cycle of innovation in fintech infrastructure services like open banking.”
“Open banking has been the backbone of financial innovation, and with the global market expected to surpass $43 billion by 2026, Spare is well-positioned to expand the open banking revolution in the Middle East,” said Muhammad Zeeshan, Chief Investment Officer at Wa’ed Ventures.
With the global open banking market accelerating at a compound annual growth rate of 24.4%, the Middle East region, supported by an evolving regulatory landscape and the surge of fintechs, is not far behind. Central banks in the Middle East and North Africa have set up or announced plans for open banking frameworks to boost competition and enhance customer experiences. This is further reinforced by a rapidly growing number of fintechs and a trend towards digital transformation across industries, indicating significant potential for open banking growth in the region.
The funding round for Spare is a testament to its early success and the potential of open banking to empower consumers and businesses with more control over their financial data. “Open banking isn’t just 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 be primarily allocated for talent acquisition, marketing, and operations in Saudi Arabia. “The belief that a lean team can execute efficiently and realize great aspirations is at the core of Spare’s philosophy. This funding round enables us to build our capabilities to drive the open banking agenda forward in the region,” added Saurabh Shah, co-founder and COO at Spare.
“My partnership with Dalal and Saurabh is a vote of confidence in their leadership and vision. I am confident that Spare will be a key player in transforming the fintech landscape across the MENA region,” stated Hasan Zainal, founding investor.
Today, Spare serves a list of innovative businesses in Saudi Arabia, including leading traditional lenders, Buy Now Pay Later Fintechs, and EFMs. As the open banking landscape grows and with plans to expand its offerings and footprint, Spare will be a leading player in building the critical infrastructure for the fintech revolution in the region.
