Emirati Fintech XSquare Closes Pre-Seed Round to Build Unified B2B Payment Infrastructure Across the GCC

Emirati fintech XSquare, which specializes in B2B payments, has closed a pre-seed funding round led by Raed Ventures, with participation from AngelSpark, 500 Global, and Oraseya Capital. The exact amount of the raise remains undisclosed.

Founded in Dubai in 2023, XSquare is building an infrastructure designed to streamline B2B payments—a sector where businesses still juggle multiple providers, banking systems, and accounting reconciliation tools. The startup’s goal is to consolidate these fragmented operations behind a single, seamless integration.

How XSquare Works: A Payment Orchestration Layer

In practice, XSquare operates as a payment orchestration layer. It enables businesses to collect payments, pay suppliers, and automate transaction reconciliation without having to integrate each provider separately. The platform leverages partnerships with key regional players such as Telr, Geidea, VaultsPay, Spare, and TESS Payments.

Notably, its collaboration with Spare integrates “Pay by Bank” into B2B payment flows, enabling near-instant settlements that are potentially more cost-effective than traditional card payments.

Strategic Partnership with Mastercard

Another key pillar of XSquare’s strategy is its partnership with Mastercard. The platform allows companies to use corporate cards to pay suppliers, even when those suppliers don’t directly accept card payments. Funds are seamlessly routed to the supplier’s bank account. According to XSquare, this model can also convert certain supplier expenses into spend eligible for corporate card benefits, rewards, and cashback programs.

Expansion Roadmap: From the UAE to Qatar, and Next: Saudi Arabia

Following its launch in the UAE, XSquare has expanded into Qatar, establishing a presence at the Qatar Financial Centre and collaborating with local banks and payment service providers. Its partnership with TESS Payments—a provider licensed by the Qatar Central Bank—forms a foundational component of its local infrastructure.

This Qatari expansion marks XSquare’s first move beyond the UAE. The company’s next announced target is Saudi Arabia, alongside the development of new banking and payment partnerships. The freshly raised capital will be deployed to strengthen its infrastructure, expand its partner network, and scale its technical and commercial teams.

Beyond Payments: Building a Unified B2B Financial Infrastructure for the GCC

For XSquare, the ambition goes far beyond simple online payments. The startup aims to become a unified B2B financial infrastructure for GCC enterprises, connecting invoicing, collections, supplier payments, and reconciliation on a single platform.

Its architecture is non-custodial: funds flow through licensed payment providers rather than touching XSquare’s balance sheet, ensuring regulatory compliance and enhanced security.