XSquare Raises Pre-Seed to Scale B2B Payments in Saudi

XSquare has raised pre-Seed funding led by Raed Ventures to expand its platform for B2B payments and payment orchestration into Saudi Arabia and across the GCC.

The funding round was led by Raed Ventures, with participation from AngelSpark, 500 Global and Oraseya Capital, a Dubai government-backed venture fund.

XSquare said it will use the new capital to expand its network of payment and banking partners, strengthen its engineering and commercial teams, and begin operations in Saudi Arabia.

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Scaling B2B Payments Infrastructure

XSquare is developing what it describes as the region's first payment orchestration layer built specifically for B2B payments. The platform brings multiple payment rails together through a single integration, allowing businesses to collect payments, make payments and reconcile transactions without having to connect separately to multiple providers.

Its current network includes payment rails from Telr, Geidea, VaultsPay, Spare and Tess Payments, with additional partners expected to be added. The approach is designed to address a common challenge for businesses operating across multiple markets: fragmented payment infrastructure that requires companies to manage different providers, integrations and reconciliation processes.

“B2B payments in this region have been underserved for too long, forced onto tools built for consumer markets,” said Tanvir Shah, Co-founder and CEO of XSquare.

“We are building the payment infrastructure that regional businesses need: card and bank rails, orchestration and reconciliation, all in one place.”

XSquare is also working with Mastercard to bring its capabilities to businesses in the region. Through the programme, businesses can use Mastercard cards to fund supplier and vendor payments that are settled directly into bank accounts.

Expanding Across the GCC

XSquare said it is deploying the solution with government organisations and large corporate clients, potentially bringing card-based payment economics to business spending that has traditionally been handled through bank transfers and other non-card channels. The partnership forms part of XSquare's broader strategy to combine card and bank payment rails within a single infrastructure.

The company has already expanded beyond its UAE home market and is operating in Qatar, where it has a presence at the Qatar Financial Centre (QFC). XSquare is working with banks and regulated payment partners in Doha as it builds out its Qatar operations. The launch represents the company's first international expansion and provides a foundation for its planned GCC growth. Saudi Arabia is now the next major market on its roadmap.

Raed Ventures' Saed Nashef, Founding Partner, said the GCC's opportunity remains largely untapped and highlighted XSquare's early traction with banks, government entities and enterprise customers. “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,” Nashef said.

The Saudi Arabian Opportunity

Saudi Arabia represents a significant opportunity for XSquare as businesses and government entities increasingly digitise procurement, payments and financial operations. The Kingdom's expanding digital economy and growing cross-border trade activity are creating demand for payment infrastructure capable of supporting businesses across multiple banking and payment networks.

For XSquare, entering Saudi Arabia also moves the company closer to its stated ambition of building a broader GCC network. The company plans to continue expanding its bank and payment-rail partnerships as it enters the market.

Why It Matters to MENA

B2B payments remain one of the less digitised parts of the region's financial ecosystem compared with consumer payments. Businesses often have to manage bank transfers, corporate cards, payment gateways and reconciliation systems separately, creating operational complexity and making cross-border payments more difficult.

XSquare's approach reflects a broader MENA fintech trend: building infrastructure that sits between businesses and fragmented financial rails, rather than creating another standalone payment product. The opportunity could become even more significant as companies expand across the GCC.

A business operating in the UAE, Saudi Arabia and Qatar may need to work with different banks, payment providers and regulatory environments. A unified orchestration layer could simplify that complexity. If XSquare can successfully scale, its infrastructure could help make payments faster, more connected and easier to reconcile while giving banks, fintechs and enterprises a common layer through which different payment rails can interact.