Bahrain-based Spare, a pioneer in open banking services, has successfully closed a $3 million funding round led by Vision Ventures.
Other participants include Wa’ed Ventures, Seedra Ventures, global investment firm 500 Global, and notable angel investors. Spare, operating in Saudi Arabia, Kuwait, and Bahrain, focuses on delivering cutting-edge open banking solutions for businesses.
Open Banking’s Regional Impact
With a strong presence in Saudi Arabia, Kuwait, and Bahrain, Spare aims to drive open banking innovation in the Middle East. Open banking facilitates faster and more accessible financial solutions, unlocking innovation within regional financial institutions. The investment round signifies Spare’s potential to lead the open banking revolution in the Middle East.
Investor Insights
Kais Al-Essa, Founding Partner and CEO at Vision Ventures, highlighted Spare’s unique combination of an exceptional team and a significant market opportunity. Vision Ventures is excited to support teams like Spare in building the next cycle of innovation in fintech infrastructure services.
Global and Regional Open Banking Trends
The global open banking market is anticipated to surpass $43 billion by 2026, with a compound annual growth rate (CAGR) of 24.4%. The Middle East and North Africa (MENA) region is closely following this trend, supported by evolving regulatory frameworks and the rise of fintech. Central banks in MENA are actively advancing open banking to enhance competition and customer experiences.
Spare’s Position and Funding Allocation
Spare’s funding round highlights its early success and the potential of open banking to empower consumers and businesses in the region. The funds will primarily be allocated to talent acquisition, marketing, and operations in Saudi Arabia.
Leadership Perspective
Dalal Alrayes, co-founder and CEO of Spare, emphasized that open banking goes beyond technological advancement, fostering a secure, accessible, and collaborative financial ecosystem. Spare aims to bring together banks, businesses, and consumers, enhancing connections and transactions in the region’s financial services.
Saurabh Shah, co-founder and COO at Spare, expressed confidence that the funding round would enable the team to drive the open banking agenda forward in the Middle East. Hasan Zainal, a founding investor, voiced confidence in Spare’s leadership and vision, foreseeing the company as a key player in transforming the fintech landscape across MENA.
Current Operations and Future Plans
Spare currently serves innovative businesses in Saudi Arabia, including traditional lenders, Buy Now Pay Later Fintechs, and EFMs. With plans to expand offerings and footprint, Spare aims to play a leading role in building critical infrastructure for the fintech revolution in the region.