XSquare Secures Pre-Seed Funding to Revolutionise B2B Payments in the Gulf

Abdelrahman Amr

Last updated 20-08-2026

4 min

XSquare raised pre-seed funding led by Raed Ventures, with backing from AngelSpark and others.

It is building a single "orchestration layer" for collecting, paying out and reconciling transactions.

The startup is already in Qatar, expanding across the Gulf and preparing to enter Saudi Arabia.

A Mastercard partnership supports supplier finance and vendor payments for governments and large enterprises.

The new capital will deepen bank partnerships and fund engineering and commercial hiring.

UAE fintech startup XSquare has secured a pre-seed round led by Raed Ventures, as it pushes ahead with plans to build out its B2B payments platform across the Gulf. The round also drew backing from AngelSpark, 500 Global and Oraseya Capital, giving the company fresh capital to grow in the UAE and Qatar and prepare for a move into Saudi Arabia.

XSquare is trying to solve a problem that many businesses know too well: handling payments across different banks, providers and systems can be a bit of a faff. Its platform brings these payment channels into one orchestration layer, so companies can collect money, send payouts and reconcile transactions without having to build separate integrations for each provider. In simple words, it wants to be the single pipe connecting businesses to several financial rails.

That matters more in B2B payments than many people realise. This side of fintech is not always the flashiest, but I reckon it is where some of the most useful infrastructure is being built. When startups across MENA begin to scale, they quickly discover that moving money smoothly between suppliers, banks and service providers is not exactly spot on by default.

The company is also working with Mastercard as part of its broader B2B payments push. Through that partnership, XSquare enables government organisations and large enterprises to roll out dedicated payment systems for supplier finance and vendor payments using corporate cards, with funds then sent directly into bank accounts. It is a specific detail, but an important one, because supplier finance is often one of those behind-the-scenes tools that can quietly improve cash flow for businesses.

Beyond its home base in the UAE, XSquare has already established a presence in Qatar through the Qatar Financial Centre. That marks its first real cross-border step, and in Doha the startup is working with banks and licensed payment solution providers to put the local infrastructure in place for its services. On the flip side, expanding in regulated financial services is never quick work, and much depends on these partnerships holding firm.

The new funding is expected to help XSquare go deeper on exactly that front. The startup plans to strengthen ties with banks and payment infrastructure partners, while also hiring across engineering and commercial roles. Well... I mean, that sounds like the sensible order of things. Too many startups chase headlines before they have proper rails underneath them.

Saudi Arabia is next on the map. XSquare is preparing to launch in the Kingdom as part of its regional growth strategy, betting on demand for more connected B2B payment infrastructure across GCC markets. For readers at Arageek, this kind of expansion story feels familiar: founders often start with one market, then realise the real challenge is stitching together fragmented systems across the region without making a compleat mess of operations.

There is also something telling in the investor mix. Raed Ventures, AngelSpark, 500 Global and Oraseya Capital are backing XSquare at a very early stage, which suggests confidence not only in the team but in the wider opportunity around B2B payment plumbing in the Gulf. And believe it or not, that less glamorous part of fintech may be where long-term value is built.

I remember speaking with early-stage founders at regional startup events who said payment operations became painful as soon as they added a second market. Not exciting, not headline-grabbing, but very real. XSquare seems to be building for exactly that gap, and if it gets the bank relationships right, the company could be chuffed to bits with where this round takes it next.

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