XSquare raises pre-Seed to expand into Saudi Arabia

XSquare, a B2B payments company based in the UAE, has closed a pre-Seed round led by Raed Ventures. The amount was not disclosed. AngelSpark, 500 Global and Oraseya Capital also participated. Oraseya is backed by the Dubai government.

Tanvir Shah and Ashwin Shenoy started the company in 2023. XSquare operates a payment orchestration platform for businesses, pulling collections, payments and reconciliation into one system. A business connects once and routes transactions across the providers behind that single integration, instead of wiring up each payment partner separately. XSquare describes the product as the region’s only B2B orchestration layer. Shah argues that regional B2B payments have been underserved, with too much existing tooling built for consumer purchases rather than for corporate finance teams.

The platform is launching with payment rails from Telr, Geidea, VaultsPay, Spare and Tess Payments. More partners are expected to follow, giving businesses more routing options without adding new integrations. XSquare also works with Mastercard to bring Mastercard’s B2B payments product to market. The product lets companies fund supplier and vendor payments with cards, and settlement goes straight to bank accounts. XSquare says it is rolling that out with government and large corporate clients, bringing commercial card economics to spending that has usually sat outside the card network.

XSquare is live in the UAE and Qatar. Qatar is its first cross-border market, and the company has a presence at the Qatar Financial Centre. It is working with banks and regulated payment partners in Doha, with an eye on a wider Gulf footprint. The company says its early traction includes banks, government entities and large corporates.

The new funding will go toward expanding XSquare’s payment rail and bank partnerships, growing its engineering and commercial teams, and launching operations in Saudi Arabia. Earlier in the year, AngelSpark provided XSquare with an undisclosed funding round of its own.

Tanvir Shah, co-founder and CEO, said:

“B2B payments in this region have been underserved for too long, forced onto tools built for consumer markets. We are building the payment infrastructure that regional businesses need: card and bank rails, orchestration and reconciliation, all in one place. Having Raed Ventures lead this round, alongside AngelSpark, 500 Global and Oraseya Capital, is a strong endorsement of that vision and of the traction we are seeing with banks, government entities and large corporates.”

Saed Nashef, founding partner of Raed Ventures, said:

“The B2B payments opportunity across the GCC is large and still largely untapped, and XSquare is one of the few teams with both the banking depth and technical execution to capture it. Their early traction with banks, government entities and enterprise clients, together with their progress on the Mastercard B2B programme, gave us the conviction to lead this round. We look forward to supporting the team as they scale across the region.”