- Ziina raised $22 million in Series A funding, led by Altos Ventures, to expand its services from payments to a comprehensive financial platform targeting SMEs.
- The fintech secured the Stored Value Facility (SVF) license from the Central Bank of the UAE, solidifying its credibility in the region.
- Ziina achieved significant growth, with a tenfold increase in annual revenue and a 34% month-on-month customer growth among UAE SMEs.
- The company is developing the ZiiCard, a tool to streamline payments and expense management for businesses and individuals.
Ziina, the UAE-based fintech platform, has successfully raised $22 million in a Series A funding round, signaling strong investor confidence in its vision and potential. Led by Altos Ventures, this significant investment round also saw participation from renowned backers such as Jabbar Internet Group, Fintech Collective, Y Combinator, Avenir Growth, Activant Capital, FJ Labs, and MEVP.
This infusion of capital is a clear testament to Ziina’s robust market positioning, especially during a time when global fintech funding has seen a notable decline.
The newly acquired funds will empower Ziina to transition from its current role as a payment solutions provider to a comprehensive financial services platform.
This strategic shift aims to meet the needs of the underserved small and medium-sized enterprises (SMEs) across the Middle East, particularly in the UAE, where SMEs make up the backbone of the economy.
With this funding, Ziina is poised to lead the next wave of fintech innovation in the region, expanding its services to offer end-to-end financial solutions that cater to both businesses and consumers.
Strategic Vision and Market Expansion
Ziina’s CEO and co-founder, Faisal Toukan, has articulated a clear and ambitious vision for the company’s future.
Positioned at the intersection of strong customer demand from SMEs, the newly acquired Stored Value Facility (SVF) license from the Central Bank of the UAE, and substantial financial backing, Ziina is uniquely placed to redefine financial services in the region.
According to Toukan, the convergence of these three critical elements will allow Ziina to accelerate its growth and enhance its offerings, transitioning from a simple payment platform to a fully integrated financial services provider.
Addressing the Needs of SMEs
SMEs are a vital component of the UAE’s economy, accounting for over 94% of all companies and contributing approximately 60% to the nation’s GDP. Despite their importance, many of these enterprises have been underserved by traditional financial institutions, particularly in accessing comprehensive digital payment solutions.
Ziina has already made significant strides in addressing these needs, as evidenced by its tenfold increase in annual revenue growth and a 34% month-on-month rise in customer adoption over the past year.
With the new funding, Ziina is well-positioned to further expand its services and reach, providing SMEs with the tools they need to manage their finances more effectively. The company’s platform has seen a surge in adoption, driven by the increasing demand for digital payment solutions among the 560,000 SMEs operating in the UAE.
The Importance of the SVF License
A crucial milestone in Ziina’s journey is the acquisition of the SVF license from the Central Bank of the UAE. This license not only enhances Ziina’s credibility but also allows it to offer a broader range of financial services with greater flexibility and security.
It solidifies Ziina’s position as a trusted financial partner for SMEs in the region, enabling the company to cater to the evolving needs of businesses that are increasingly turning to digital solutions.
Investors have taken note of this strategic achievement, with Dillon Krasnigor, Partner at Altos Ventures, expressing confidence in Ziina’s ability to drive innovation in the financial services sector.
Krasnigor commended Ziina’s consistent performance and its success in securing the SVF license, which positions the company to meet the growing demands of its customers. He also praised the Central Bank of the UAE for its forward-thinking approach in supporting fintech innovation by granting Ziina the SVF license.
Building a World-Class Team
Ziina’s growth trajectory is supported by a team of leading technologists and innovators from global giants such as Apple, Uber, Nubank, Klarna, Coinbase, Amazon, FundingCircle, and Yandex. With the recent funding, Ziina plans to expand this team by bringing in additional experts from fintech leaders like Revolut and Nubank. These new hires will play a critical role in scaling Ziina’s operations and driving its next phase of growth.
Innovations and Future Plans
Looking ahead, Ziina is focused on launching new services and expanding into additional markets, including Saudi Arabia and Jordan. One of the most anticipated innovations is the ZiiCard, a product designed to revolutionize how businesses and individual customers manage and access their funds.
The ZiiCard will provide businesses with a simplified way to manage supplier payments and expenses, while individual users will benefit from features like expense categorization and the ability to split payments.
As of 2023, approximately 77% of SMEs in the UAE have integrated digital payments into their operations, reflecting a growing demand for advanced financial management tools.
Despite this progress, a recent survey by PwC Middle East revealed that many SMEs in the region still face significant challenges in accessing finance and managing cash flow. Ziina’s comprehensive financial solutions, including a payment gateway for website checkout and point-of-sale (POS) solutions, are designed to address these challenges and empower businesses to thrive in a digital economy.
Looking Ahead
Ziina’s successful Series A funding round is a pivotal moment in its journey to becoming a leading financial services provider in the Middle East. With strong financial backing, a clear strategic vision, and a commitment to innovation, Ziina is well-equipped to drive the next wave of fintech growth in the region. As the company continues to expand its services and enter new markets, it remains focused on empowering SMEs and fostering a cashless society across the Middle East.
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Last Updated on September 4, 2024 by Safiya K
