KSA-Based Spare Bags US$5 Million Pre-Series A To Power Open Banking In The GCC

Saudi Arabia-based fintech Spare has secured US$5 million in a pre-Series A round, pulling together a heavyweight lineup of backers led by the anb Seed Fund, the venture capital arm of ANB Capital, a subsidiary of Saudi Arabia's Arab National Bank.  

Other investors included Riyadh-based early-stage investor Vision Ventures, Saudi Arabia’s venture builder SEEDRA Ventures, the San Francisco-headquartered venture capital firm 500 Global, Kuwait’s Shariah-compliant investment management firm Boubyan Ventures, and the Middle East-focused venture capital firm Middle East Venture Partners (MEVP), along with several individual investors. 

Founded by Dalal Alrayes and Saurabh Shah in KSA in 2019, Spare provides an open banking infrastructure platform that enables financial institutions and fintechs to securely access financial data and process account-to-account payments. Its services span account aggregation, identity verification, risk assessment, and recurring payments, and are already being used by regional companies like Tap Payments, Tamara, and Zid. 

In an interview with Inc. Arabia, Alrayes reflected on why Spare has attracted such a strong roster of backers. “Investors usually look for three things: a large market opportunity, a differentiated offering, and a solid founding team that can execute,” she said. “In our case, the timing around fintech growth and open banking created a huge opportunity, and Spare was positioned right at the center of that transformation. Spare is elevating the region’s financial services by bringing together financial institutions, businesses, and consumers. Through Spare, businesses are able to unlock new innovations and services more than ever before while providing a secure, accessible, and collaborative financial ecosystem. What really resonated with investors was how quickly we built traction with complete bank coverage across three markets, and a growing portfolio of products and customers.” 

That traction is reflected in the company’s current footprint. Today, Spare connects to more than 35 financial institutions, is licensed by the Central Bank of Bahrain, authorized under Saudi Arabia’s sandbox, piloting services in Kuwait, and holds preliminary approval for an open finance license in the UAE. Alrayes also noted that, beyond numbers, investors looked at the strength of the founding team as well. “The unique strength that Saurabh and myself bring as founders combines a deep financial sector expertise with hands-on product development experience," she said. "This gave investors confidence that we could deliver and scale. We are fortunate to have investors who are not only providing capital but are deeply engaged partners bringing strategic expertise and long-term commitment.” 

The new investment follows a $3 million round in 2023 led by Vision Ventures, alongside Wa’ed Ventures, SEEDRA Ventures, 500 Global, and angel investors. Armed with this new injection of capital, Spare is set to scale its platform further, sharpen its application programming interface (API) integrations, roll out new products, and accelerate its reach across Gulf markets. That push comes at a moment of growing momentum for open finance in the region. The Saudi Central Bank has already launched an Open Banking Lab and a regulatory framework to spur interoperability, while the Central Bank of the UAE is fast-tracking its own open finance framework. Analysts forecast the regional market could reach $10.16 billion by 2030—making Spare’s timing in sync with accelerating trends. 

Yet, with rapid growth comes complexity. As Spare expands deeper into Saudi Arabia and charts its path into the UAE and beyond, the opportunities are vast—but the road is not without obstacles. “The main challenge for open banking adoption is the pace and fragmentation of the regulatory environment across the region," Alrayes said. "The differences in regulatory frameworks, use cases, and technical requirements from one market to another add complexity for regional partnerships and scale."

In spite of these challenges, Alrayes noted that, as open banking gains traction across the region, regulatory frameworks are being developed to support it. “In Saudi Arabia, the government has been a strong champion of open banking, and the pace of regulatory development is impressive," she said. "The UAE’s Open Finance Framework, rolled out last year, has a broader mandate. Bahrain has the advantage of being an early mover with mature regulation, while Kuwait has a very promising market that is now catching up on the regulatory side.” 

And even as open banking continues to gain momentum today, Spare already has its sights on what comes next. “For me, the next frontier is open finance," Alrayes said. "Open banking allows us to build the foundational components, but open finance unlocks new opportunities in other verticals, such as insurance, investments, and wider lending products. I believe that’s where the real innovation will happen." In the meantime, Spare is focusing on its strongest market, Saudi Arabia, while preparing to move quickly in the UAE. “At the same time, we are monitoring the progress of open banking frameworks in Kuwait, Oman, and Qatar, with a long-term outlook for the rest of the Middle East,” she added. 

As the conversation turned to lessons for other fintech founders, Alrayes was ready to offer her advice. “My biggest advice to fintech entrepreneurs is to embrace regulation and compliance as a core part of your strategy, rather than something you deal with later,” she said. “It is also important to stay open to the idea that each market, along with its financial habits and consumer expectations, will differ from one market to another. But most importantly, choose people who share your vision and passion for what you are building. That’s the most important investment you can make.” 

Pictured in the lead image are Spare co-founders Dalal Alrayes (L) and Saurabh Shah (R). Image courtesy Spare.