Spare, a trailblazing provider of open banking services, today heralded the completion of a $3 million funding round.
This significant financial boost was led by Vision Ventures, with contributions from Wa’ed Ventures, Seedra Ventures, the global investment firm 500 Global, and a group of noteworthy angel investors.
Founded by Dalal Alrayes and Saurabh Shah, Spare operates across Saudi Arabia, Kuwait, and Bahrain. The company specializes in providing state-of-the-art Open Banking solutions to businesses. These solutions are set to revolutionize financial institutions in the region by enhancing the availability and speed of financial services.
The $3 million raised will fuel Spare’s ambitious plans to lead open banking innovation across the Middle East. Vision Ventures, alongside other investors, have shown confidence in Spare’s potential to transform the fintech infrastructure landscape, particularly in open banking.
Open banking forms the foundation of modern financial innovation. With a global market expected to exceed $43 billion by 2026, Spare is strategically positioned to catalyze the open banking revolution in the Middle East. The MENA region is witnessing a dynamic shift, supported by evolving regulatory frameworks and a burgeoning fintech ecosystem, making it ripe for open banking advancements.
The funding underscores Spare’s early success and the growing importance of open banking in empowering consumers and businesses to manage their financial data effectively. As Dalal Alrayes, co-founder and CEO of Spare, emphasized, open banking is more than a technological innovation; it’s about creating a secure, accessible, and collaborative financial ecosystem.
Spare plans to use the funds primarily for talent acquisition, marketing, and operational expansion in Saudi Arabia. The company’s philosophy hinges on the belief that a lean team can execute efficiently and achieve great aspirations. This funding round is a critical step in enhancing their capabilities to advance the open banking agenda in the region.
Co-founder and COO, Saurabh Shah, echoed these sentiments, highlighting the funding round as a catalyst for building Spare’s capacity in driving open banking forward. Founding investor Hasan Zainal expressed his confidence in the leadership and vision of Dalal and Saurabh, foreseeing Spare as a key player in transforming the fintech landscape across MENA.
Currently, Spare collaborates with a range of innovative businesses in Saudi Arabia, including top-tier traditional lenders, Buy Now Pay Later Fintechs, and EFMs. With its expanding portfolio and plans to broaden its footprint, Spare is poised to be a frontrunner in establishing the essential infrastructure for the fintech revolution in the region.
Kais Al-Essa, Founding Partner and CEO at Vision Ventures, said, “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.”
Muhammed Zeeshan, Chief Investment Officer at Wa’ed Ventures, added, “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.”
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