Ziina Banks $22M as Growth Explodes for UAE
Introduction Of Ziina
In June 2021, Ziina, a fintech startup based in Dubai, launched its app, fresh off securing a $7.5 million seed funding after completing Y Combinator’s first cohort that year. Initially targeting retail customers, the app allowed 20,000 users to send and receive money easily. Fast forward three years, and Ziina’s expansion into the micro, small, and medium-sized business (SME) sector has brought its customer base to 50,000, with services catering to both retail and business users. The fintech’s impressive growth trajectory has culminated in a $22 million Series A funding round, led by Altos Ventures.
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Expanding SME Segment
It began as a peer-to-peer (P2P) payment app focused on simple transactions, like splitting bills among friends. However, its customer base soon revealed a broader demand: business users also sought a streamlined platform for financial transactions. In response, It expanded its offerings, creating It Personal for retail customers and Ziina Business for SMEs. The latter enables businesses to send payment links, accept payments through Apple Pay, Google Pay, MasterCard, and Visa, and utilize additional tools like payment gateways integrated with platforms like WooCommerce and Shopify, as well as point-of-sale (POS) solutions using QR codes.
This shift in focus reflects the growing need for digital payment solutions in the UAE’s SME sector, which comprises 94% of all companies and contributes about 60% of the nation’s GDP. By addressing this underserved market, It positions itself as a key player in the region’s digital transformation. In 2023, with 77% of UAE SMEs adopting digital payments, It growth aligns with the increasing demand for financial management tools.
“We’re an all-in-one platform for businesses to get paid in the UAE,” says Co-founder and CEO Faisal Toukan. “We’ve evolved from a consumer app into an ecosystem that connects consumers and businesses for payments under one platform, making us a financially trusted partner in the market.”
Product-Led Growth
Ziina’s product strategy targets three critical pain points for SMEs: accessibility, cost transparency, and user experience. The platform allows SMEs to open accounts and set up payment processors in minutes, offers transparent pricing with no hidden fees, and provides a dashboard for tracking both online and offline payments.
This customer-focused approach has led to significant growth. It now processes around AED 1,050 ($280) every 60 seconds, with an annualized transaction volume projected to reach AED 1.1 billion ($300 million) — double the previous year’s figure. Notably, 55% of Ziina’s customers come through organic growth, driven by a product-led strategy without a dedicated sales team. However, with its new Central Bank of the UAE license, the company is preparing to scale even further by onboarding its first sales hires.
Strategic Advantage and Future Outlook
Ziina’s recently acquired Stored Value Facility (SVF) license from the UAE Central Bank gives the fintech a competitive edge. This license allows Ziina to offer a broader range of financial solutions, excluding lending, which requires a separate license. With plans to venture into expense management through its upcoming ZiiCard product, Ziina aims to differentiate itself from competitors like Paymob, Tabby, Telda, and Mamo, which offer overlapping services in the region.
Despite the competitive landscape, Toukan remains optimistic about Ziina’s potential. “If we at Ziina do our jobs correctly, we should have 200,000 monthly active businesses on the platform in four years,” he stated, drawing comparisons to Nubank’s success in Brazil. With continued growth in the Middle East and particularly the UAE, Toukan sees ample opportunity for Ziina to capture a significant share of the market.
Conclusion
Ziina’s $22 million Series A round, which also saw participation from Activant Capital, Avenir Growth, Fintech Collective, FJ Labs, Jabbar Internet Group, Middle East Venture Partners, and Y Combinator, brings its total venture funding to over $30 million since its inception in 2020. As Ziina continues to scale, its focus on SME-driven growth and product innovation positions it as a leading fintech in the MENA region, well-equipped to meet the evolving needs of businesses across the UAE.