Ziina, a UAE-Based Fintech, Secures $22 Million in Series A Funding to Expand Financial Services
Ziina, a fintech startup based in the UAE, has successfully raised $22 million in a Series A funding round. The round was led by Altos Ventures, a US-based firm, and saw participation from notable investors such as Fintech Collective, Avenir Growth, Activant Capital, Y Combinator, FJ Labs, MEVP, and Jabbar Internet Group.
Founded in 2020 by Faisal and Sarah Toukan, Ziina simplifies the process of sending and receiving payments through its app, requiring only a phone number—eliminating the need for IBAN or Swift Codes. The company launched its digital wallet in February 2022, and this latest funding round will support Ziina’s transition from a payment platform to a comprehensive provider of financial services for both businesses and consumers. The company is gearing up to launch the ZiiCard, an innovative product that will play a crucial role in this expansion.
Despite a global slowdown in fintech investments, with funding dropping from $144.2 billion in 2021 to $40.7 billion in 2023, Ziina’s ability to secure significant funding highlights its strong market position and the confidence investors have in its potential. Over the past year, Ziina has seen a surge in demand from SMEs for its all-in-one payment solutions, which has contributed to a tenfold increase in annual revenue and a 34% monthly growth in customer acquisition. The company’s recent acquisition of the Stored Value Facility (SVF) license from the Central Bank of the UAE further strengthens its position as a reliable financial partner in the region.
Ziina serves a vital market of 560,000 SMEs in the UAE, which make up over 94% of all companies and contribute approximately 60% of the country’s GDP. As of 2023, 77% of these SMEs have integrated digital payment solutions, leading to an increasing demand for advanced financial management tools. However, many SMEs in the Middle East continue to face challenges in accessing finance and managing cash flow, with around 50% still struggling, according to PwC Middle East. Ziina’s suite of services, including a payment gateway and POS solutions, addresses these needs, providing essential tools for businesses to streamline operations and foster growth.
The $22 million in new funding will drive Ziina’s technological innovation and product development. The investment will be pivotal in realizing Ziina’s vision of revolutionizing financial services in the Middle East by offering a secure, user-friendly platform. Ziina plans to enhance outbound payment capabilities, beginning with the ZiiCard, which is designed to help businesses manage expenses more effectively and offer instant access to digital wallet balances. For individual users, features like expense categorization and payment splitting will add both convenience and security to their financial activities.
Faisal Toukan, Ziina’s CEO and Co-Founder, noted, “Ziina is at a crucial crossroads where we’re seeing strong demand from the underserved SME sector, we’ve obtained the SVF license from the Central Bank of the UAE, and we have secured long-term support from top-tier investors. These elements uniquely position Ziina to lead the next wave of fintech innovation in the UAE and beyond. This funding accelerates our journey from a payment platform to a full-spectrum financial services provider, enhancing our offerings and expanding our presence across the Middle East.”
A key factor in Ziina’s success has been its ability to attract top-tier talent from around the world, including experts from companies like Apple, Uber, Nubank, Klarna, Coinbase, Amazon, FundingCircle, and Yandex. With the new funding, Ziina is bringing in additional talent from global tech and fintech leaders such as Revolut and Nubank, both of which have scaled to valuations of $45 billion and $70 billion, respectively.
Dillon Krasnigor, Partner at Altos Ventures, expressed confidence in Ziina’s future, stating, “We’re excited to partner with the Ziina team for their next growth phase. The company’s ability to secure the SVF license from the UAE government, alongside its consistent performance and innovative product offerings, positions Ziina as a major player in the Middle Eastern financial services sector. We also commend the Central Bank of the UAE for fostering innovation in fintech by granting Ziina the SVF license.”
Looking ahead, Ziina’s combination of strategic funding, a growing customer base, and commitment to innovation solidifies its role in shaping the future of finance in the Middle East. With plans to enter new markets like Saudi Arabia and Jordan, Ziina is on a fast track to becoming the region’s leading financial platform, promoting economic empowerment and advancing towards a cashless society.
