UAE FinTech Qashio Raises $10 Million to Accelerate Expansion into Saudi Arabia

UAE-based financial technology startup Qashio raised $10 million in a seed round and the company plans to expand into Saudi Arabia, the Arab world’s largest economy.

The new financing round, which consists of both equity and non-equity financing, included participation from various international and regional investors, the company said in a statement on Tuesday.

These include One Way Ventures, Mitaa, Cadorna Ventures, Sanabil 500 Mena, Nuwa Capital, Iliad Partners and Phoenix Investments, as well as various strategic family offices and angel investors.

Founded in 2021 by founders Armin Moradi and Jonathan Lau, Qashio issues payment cards to companies linked to FinTech’s software, which automates the management of a company’s expenses.

The startup can issue virtual or physical Qashio cards to employees with restrictions on spending, frequency of use and vendors. This allows companies to better control their finances while reducing costs and saving working hours.

Transactions made with Qashio’s card are automatically captured by the software and synced to the company’s accounting system, reducing the time companies spend reconciling expenses and receipts while providing management with a real-time view of expenses.

“At Qashio, we are proud to be an integral part of driving a cashless society in the UAE and now Saudi Arabia,” said Moradi, CEO and co-founder of Qashio.

“We are committed to helping businesses move away from all the manual financial processes and gain more visibility and control by offering a safe, secure solution.

“Saudi Arabia is making great efforts to align with its Vision 2030 – by taking FinTech-friendly approaches and bringing more FinTech firms into the market.”

The FinTech market worldwide is estimated to reach $332.5 billion by 2028, from $112.5 billion in 2021, the latest report from global payments company MasterCard showed.

There are more than 470 FinTech unicorns – or startups valued at $1 billion and above – globally, with 40 of them added in the first quarter of this year.

The Middle East and North Africa region is expected to have 45 FinTech unicorns by 2030, a tenth of the global number, the report said.

“This funding round will help us expand hiring and growth into Saudi Arabia and other parts of the GCC, as well as accelerate the execution of our product roadmap. We are excited for the days ahead,” said Lau, Chief Product Officer and Co-Founder of Qashio.

Qashio’s virtual and physical cards combined with the software allow businesses to manage their expenses in an automated and transparent manner, saving hundreds of man hours and reducing cash leakage in the process, the company said.

Finance and HR departments benefit from “better expense reporting, better visibility, control over cash flow and a skilled workforce”, it added.

Updated: 22 November 2022, 15:22