French-Lebanese fintech startup Xfolio has secured US$2 million in seed funding from Middle East Venture Partners (MEVP).

The funding will support the company’s product development and market expansion in the Middle East and Europe.

The funds will be allocated to developing AI-powered recommendation tools and cross-bank trading capabilities.

Xfolio also plans to enhance its platform’s features and increase its presence in the MENA and European regions.

Xfolio was founded in 2024 by entrepreneur Anis Rahal. The company offers a cloud-based platform that integrates portfolio management and treasury automation for financial institutions, family offices, and wealth managers.

🔗 Source: Xfolio

🧠 Food for thought

1️⃣ XFOLIO launches amid explosive MENA fintech growth and digital transformation

XFOLIO’s entry into the market coincides with significant growth in the Middle East and North Africa (MENA) fintech sector, which is projected to triple in value from $1.5 billion in 2022 to between $3.5 billion and $4.5 billion by 20251.

The UAE, where XFOLIO will operate, leads the region’s fintech landscape, capturing 37% of total MENA fintech funding in 2022, followed by Saudi Arabia (25%) and Egypt (20%)2.

This growth is supported by increasing digital adoption across the region, with nearly 90% of banking consumers in the UAE and Saudi Arabia now using digital channels for banking transactions2.

XFOLIO’s focus on cloud-based wealth and treasury management solutions aligns with the region’s shift from basic financial offerings to more sophisticated services, positioning the company to capitalize on this evolving market.

The $2 million seed funding from MEVP represents part of the estimated $5-7 billion in additional funding the MENA fintech sector is projected to require over the next three years to support its growth trajectory2.

2️⃣ Legacy system replacement creates market opportunity for modern wealth platforms

XFOLIO’s value proposition directly addresses a critical pain point in the financial sector: outdated wealth management systems that create significant operational inefficiencies for financial professionals.

Studies show that financial advisors spend 60-70% of their time on non-revenue-generating activities due to legacy processes and systems, highlighting the urgent need for modernization3.