UAE-based B2B payments company XSquare has closed a pre-Seed funding round led by Raed Ventures, with participation from AngelSpark, 500 Global and Oraseya Capital, a Dubai government-backed venture fund.
The company, which operates in partnership with Mastercard, plans to use the new capital to expand its payment and banking partnerships, strengthen its engineering and commercial teams, and launch operations in Saudi Arabia.
Founded to address the fragmented B2B payments landscape across the region, XSquare is building a payment orchestration layer designed specifically for businesses. Its platform brings multiple payment rails under a single integration, enabling companies to collect payments, pay suppliers and reconcile transactions across different providers without managing separate systems.
XSquare is launching its orchestration platform with integrations across Telr, Geidea, VaultsPay, Spare and Tess Payments, with additional partners expected to be added as the company scales.
Through its partnership with Mastercard, XSquare is also bringing Mastercard’s B2B payments product to the regional market. The solution enables businesses to fund supplier and vendor payments by card while allowing recipients to receive the funds directly into their bank accounts.
According to the company, the programme is already being deployed with government entities and large corporate clients, targeting business spending that has traditionally remained outside the commercial card ecosystem.
“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.”
Beyond its UAE operations, XSquare has already expanded into Qatar, where it has a presence at the Qatar Financial Centre (QFC) and is working with banks and regulated payment partners. Qatar represents the company’s first international market and forms part of its broader GCC expansion strategy.
Saed Nashef, Founding Partner at Raed Ventures, said XSquare’s traction with banks, government entities and enterprise customers, alongside its progress with the Mastercard B2B programme, contributed to the firm’s decision to lead the round.
The next stage of XSquare’s expansion will focus on Saudi Arabia, as the company looks to build a wider GCC footprint and capture growing demand for dedicated B2B payment infrastructure.
