UAE-based fintech firm Qashio has raised US$19.8 million in a funding round that included both equity and non-equity financing.

The round was led by existing investor Rocketship VC and included participation from MoreThan Capital, regional banks, and family offices.

Founded in 2021, Qashio offers a spend management platform that helps businesses monitor and control expenses.

The company plans to use the new funds to expand into Saudi Arabia and enhance its B2B loyalty program across the MENA region.

This funding follows a US$10 million seed round raised by Qashio in 2022.

The company operates in 22 countries and reported profitability in the first quarter of 2025, with earnings exceeding US$1.2 million.

🔗 Source: Qashio

🧠 Food for thought

1️⃣ Saudi Arabia’s regulatory environment drives fintech expansion costs

Qashio’s specific mention of using funds to “enhance regulatory compliance ahead of the company’s entry into Saudi Arabia” highlights a critical challenge for fintech companies expanding into the Kingdom.

Saudi Arabia has developed one of the most complex but promising fintech regulatory frameworks in the region, with oversight split between the Saudi Central Bank (SAMA) and the Capital Market Authority (CMA), creating a dual-regulator model that requires careful navigation 1.

Recent legal analyses identify compliance with financial regulations, data privacy requirements, and Sharia compliance as the top three legal challenges for fintech entrants, often requiring substantial investment in specialized legal and compliance teams 2.

The timing is strategic, as Saudi Arabia’s fintech sector is experiencing rapid transformation under Vision 2030, with the government introducing new regulatory sandbox programs and licensing frameworks specifically designed to increase fintech participation in the financial system 3.

2️⃣ MENA fintech funding shows maturing investment patterns

Qashio’s mixed equity and non-equity funding round reflects a broader maturation in how MENA fintech companies are raising capital compared to earlier stages of the ecosystem’s development.

In 2019, the entire MENA fintech sector had raised just $237 million across 181 deals since 2015, while by 2022, investment had accelerated dramatically with $819 million raised in just the first half of that year alone 45.