Dubai-based fintech company XSquare has closed an undisclosed pre-seed funding round involving Raed Ventures, AngelSpark, 500 Global and Oraseya Capital.
The company plans to use the capital to add payment and banking partners, expand its engineering and commercial teams, and begin operating in Saudi Arabia. Its entry into the kingdom would follow an initial move outside the UAE into Qatar, where XSquare says it has established a presence at the Qatar Financial Centre and is working with banks and regulated payment providers.
Founded in 2023 by Tanvir Shah and Ashwin Shenoy, XSquare develops software for business-to-business payments. The platform brings invoicing, collections, outgoing payments and transaction reconciliation into one system. Instead of replacing banks or payment processors, the company connects businesses with different payment rails and feeds the resulting transaction information back into their financial records.
Bringing Payment Functions Together
Payment orchestration generally refers to a software layer that connects a business with multiple payment providers through a common technical interface. XSquare is applying that approach specifically to transactions between companies, where an invoice, bank transfer, card payment and accounting entry may otherwise move through separate systems. The company says its platform can manage both receivables and payables while automatically matching payments with the relevant invoices.
Tanvir Shah, Co-founder and Chief Executive Officer at XSquare, 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, AngelSpark, 500 Global and Oraseya Capital participate in this round is a strong endorsement of that vision and of the traction we are seeing with Banks, Government entities and large Corporates.”
Its announced payment network includes Telr, Geidea, VaultsPay, Spare and Tess Payments. XSquare also says it integrates with accounting and enterprise resource planning products including Zoho Books, Xero, Wafeq and Odoo. These integrations are intended to reduce the manual work involved in comparing bank records, processor reports and outstanding invoices, although the company has not published independent data quantifying the time or cost savings generated by its platform.
A partnership with Mastercard is another part of XSquare’s offering. According to the funding announcement, the arrangement enables businesses to charge supplier invoices to commercial cards while the supplier receives the proceeds in a bank account. This structure can allow a vendor that does not normally accept cards to receive a bank settlement, while the paying company processes the transaction through its existing card facility.
Saudi Market Becomes the Next Test
Saudi Arabia provides XSquare with a larger market, but entering it will require the company to establish the appropriate local partnerships and operate within the kingdom’s regulatory framework. XSquare describes itself as a non-custodial technology provider, meaning it says customer funds do not pass through its own balance sheet. Payments are instead handled through licensed payment service providers in each market.
The planned expansion comes as Saudi Arabia continues to increase its use of digital payment infrastructure. Electronic methods accounted for 85% of retail payments in 2025, up from 79% a year earlier, according to the Saudi Central Bank. The number of electronic transactions reached 14.6 billion, compared with 12.6 billion in 2024. Although those figures measure retail rather than business-to-business payments, they illustrate the broader shift toward electronic transactions in the kingdom.
Raed Ventures Founding Partner Saed Nashef said: “We like to back companies that build enabling infrastructure for the region’s digital economy and are led by teams with strong founder-market fit. XSquare is building critical infrastructure for the largely underserved B2B payments market, and Tanvir and Ashwin have the experience and relationships required to build and scale in this market. We’re excited to back them and look forward to supporting their expansion across the region.”
