Top-funded fintech companies in the Middle East in 2022

The year 2022 has been significant for the fintech market in the Middle East. As per a report by Strategy&, the sector has already raised $1.73 billion in the first half of 2022, compared to raising a total of $2.5 billion in 2021.

The growth in the Middle Eastern fintech ecosystem this year can be attributed to countries in the region—the UAE, Saudi Arabia, Egypt, and Bahrain—launching initiatives such as free zones and regulatory sandboxes, and adopting artificial intelligence and more.

The pandemic gave a further fillip to the sector with greater adoption of contactless and digital customer experience, according to a report by Mordor Intelligence.

A recent report by Startegy&, Fintech in the Middle East: Building on the Momentum, highlighted the need for concentrated efforts in both public and private sectors to bring more growth and sustainability to fintech in the Gulf region.

The report pointed out that a growing number of companies in the sector are moving towards successful IPOs. This is being aided by the GCC region’s investment in the sector in the form of establishment of fintech hubs that have actively pushed towards the growth of smaller companies and startups.

The report mentioned, “Some of the GCC fintech hubs are now so large that they are on the global fintech map.”

Looking at the growth in the sector, here is a look at some of the top-funded fintech companies in the region based on research data gathered by YourStory Gulf Edition.

Tabby, UAE

Tabby is a buy now pay later (BNPL) fintech app that lets customers make both online and offline purchases. Founded in 2019 by Daniil Barkalov and Hosam Arab, Tabby caters to over two million active users across Saudi Arabia, UAE, Egypt, and Kuwait.

The app can be used to purchase products from over 4,000 global brands and small businesses, including H&M, Adidas, IKEA, Shein, and more.

In August 2021, Tabby raised $50 million in Series B funding from investors like Arbor Ventures, Global Founders Capital, Mubadala, Sequoia Capital India, and STV, taking the total funding raised by the company to $336 million.

Rain, Bahrain

Rain is a regulated cryptocurrency exchange operating in the Middle East. It was founded in 2017 by Abdullah Almoaiqel, AJ Nelson, Joe Dallago, and Yehia Badawy with branches in Manama, Al Manamah, and Bahrain.

The company raised $110 million in a Series B funding round in January 2022 from investors such as A'Z Angels, Cadenza Ventures, CMT Digital Ventures, Coinbase Ventures, Global Founders Capital, Jameel Investment Management Company, and others. The total funding raised by Rain so far is $228 million.

Tamara, Saudi Arabia

Tamara is a BNPL platform that allows shoppers to split their payments online and in-store with no extra fees or interest. The company was founded in 2020 by Abdulmajeed Alsukhan, Abdulmohsen Albabtain, and Turki Bin Zarah.

The platform is used by retailers like Shein, Namshi, Swarovski, and Faces to provide flexible financial solutions to their customers in Saudi Arabia, the UAE, and Kuwait.

The company closed its Series B round of $100 million in August 2022 from investors like Coatue, Endeavor Catalyst, Sanabil, and Shorooq Partners. The total funds raised so far by Tamara are at $215.6 million.

YAP, UAE

YAP  is a neobank focused on improving the digital banking experience. It provides users with spend analytics, payments, transfers, and budgeting.

Founded in 2018 by Marwan Hachem, the company has raised a total of $41 million so far. It plans to close its Series A funding by the end of 2022.

Huspy, UAE

Based in Dubai, UAE, Huspy makes home financing easier with the help of technology. It was founded in 2020 by Jad Antoun and Khalid Ashmawy.

Huspy closed its Series A round of $37 million from investors such as Breyer Capital, BY Venture Partners, Chimera Capital Management, and others. It has raised a total of $47 million as of 2022.

HyperPay, Saudi Arabia

HyperPay is a one-stop regional fintech company that provides businesses with a host of integrated payment solutions and other financial services.

Founded in 2010 by Muhannad Ebwini, the company raised $36.7 million in June 2022 from investors such as AB Ventures, Amwal Capital Partners, and Mastercard, taking the total funds raised by the company so far to $50.4 million.

Lean Technologies, Saudi Arabia

Lean Technologies  has built an API suite that enables businesses to seamlessly access their customer’s financial data and initiate instant bank transfers. Founded in 2019 by Aditya Sarkar, Ashu Gupta, and Hisham Al-Falih, Lean has offices in Riyadh, Dubai, Cairo, and London.

The startup raised its Series A funding of $33 million in January 2022 from investors such as Henrique Dubugras, Human Capital, Jameel Investment Management Company, and others. The total funds raised so far are $36.5 million.

Spendwisor Inc, Qatar

Spendwisor offers customers with mobile wallet and mobile POS (mPOS) services with an integrated loyalty programme, cashbacks, and more. Based in Qatar, the company was founded in 2020 by Khalid Al-Kaabi and Safarudheen Farook.

Spendwisor secured $1 million in a pre-Series A round in July from GSD Venture Studios. It raised a total of $85.1 million in 2022.

Grizzly.fi, UAE

Founded in 2021, Grizzly.fi is a crypto platform that simplifies investing in the best opportunities in DeFi. It has raised $26 million in an undisclosed funding round so far.

Quint, UAE

Quint.io connects the metaverse and the real world. The boutique NFT marketplace allows customers to buy and sell creative NFTs, install them into Token Frames, and deliver them to the real world.

Founded in 2021, the company raised $25 million from Galaxy Racer in May 2022.

Cashew Payment

Cashew Payment is a buy now, pay later platform. It offers a point-of-sale financing with curated credit lines and also provides an option to split payments into instalments or simply delay them to up to a fortnight, all without any hidden fees.

The company was co-founded by Ammar Afif and Ibtissam Ouassif in 2019 and is headquartered in Dubai. It secured debt financing worth $24 million from Mashreq Bank, taking the total funding raised to $41 million.

NymCard, UAE

NymCard is an issuer-processor payment platform for banks and other financial institutions in Africa and the Middle East. It enables them to issue innovative digital payment products in regions that have historically dealt with extremely low penetration of payment cards.

Founded in 2018 by Ayman Chalhoub and Omar Onsi, NymCard raised $22.5 million in Series A in June 2022 from the Dubai Future District Fund. The total funds raised by the startup so far are $36.1 million.

Baraka, UAE

Baraka is a commission-free stock investment app for Middle East investors, with localisation at its core. It allows users to start investing in over 6,000 stocks and ETFs in the US markets.

The startup was founded in 2020 by Feras Jalbout. Baraka raised $20 million in a Series A round in November 2022 from Knollwood Investment Advisory and Valar Ventures, taking its total funding to $25.1 million.

Hubpay, UAE

Founded in 2018 by Kevin Kilty, Hubpay is an independently regulated provider of cross-border money services that aims to increase financial inclusion in emerging markets.

In February 2022, Hubpay raised $20 million in a Series A round led by Aditum Bio, BECO Capital, Emkan Capital, and more, taking the total funds raised by the company to $22 million.

AHOY Holding, UAE

AHOY Holding provides geo-location solutions, payment solutions, IoT hardware, and more for ecommerce and retail sectors. It was founded by Adel Samer, Gerard Sansoni, and Jamil Shinawi in 2018.

The company raised $20 million in March 202 2 from undisclosed investors, taking the total amount raised to $23.7 million.