- Saudi Arabia-based fintech startup Spare has raised a $3 million round led by Vision Ventures with participation from Wa'ed Ventures, Seedra Ventures, global investment firm 500 Global, and angel investors.
- Founded in 2018 by Dalal Alrayes and Saurabh Shah, Spare’s open banking platform allows businesses to access their customers' financial data to create new products. It is connected to banks in the region and offers a single connection to businesses to simplify access to data.
- The funds will be used to grow the team and expand operations and marketing.
Spare, the pioneering open banking services provider, today announced the close of a $3 million funding round led by Vision Ventures with participation from Wa'ed Ventures, Seedra Ventures, global investment firm 500 Global, and notable angel investors.
Spare was established by Dalal Alrayes and Saurabh Shah. It operates in Saudi Arabia, Kuwait, and Bahrain and focuses on providing cutting-edge Open Banking solutions for businesses. Open Banking will unlock the innovations in financial institutions in the region and make the availability of financial solutions and services much easier and faster than ever before.
"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.
As the global open banking market accelerates, with a CAGR of 24.4%, the MENA region is not far behind, supported by an evolving regulatory landscape and the surge of fintechs. Central banks across MENA have either laid out or announced plans for frameworks to advance open banking, aiming to boost competition and enrich customer experiences. This is further reinforced by a rapidly growing number of fintechs and a trend of digital transformation across industries, indicating a significant potential for open banking to flourish in MENA.
Spare’s funding round is a testament to its early success and the potential for open banking to empower consumers and businesses with more control over their financial data. "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 be predominantly allocated for talent acquisition, marketing, and operations in KSA. "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 KSA, 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.