MENA-based Open Banking platform Tarabut Gateway has raised $32 million in a Series A fundraise, as it gears up to grow its footprint in the Kingdom of Saudi Arabia (KSA).
The funding round was led by alternative investment firm Pinnacle Capital, with participation from bank affiliate institutional investor Aljazira Capital, Visa, Tiger Global, and other existing investors.
Abdulla Almoayed, founder and chief executive officer of Tarabut Gateway, said: “Open Banking is reshaping the financial landscape in KSA and the wider Middle East, and we, at Tarabut Gateway, are proud to be at the forefront of this innovation.
“This fundraise reflects the potential of Open Banking, our advanced technology, and the trust placed in us by our partners both in KSA and globally.”
Almoayed added: “Tarabut Gateway’s mission is to create an open financial services sector that delivers Open Banking benefits to MENA’s consumers, banks, and fintechs – and the proceeds of this fundraise will help us execute our strategy and contribute to realising the Kingdom of Saudi Arabia’s ambitious Vision 2030.”
Tarabut Gateway said that investor Visa will provide “extensive expertise, experience, and network in the payment services sector”, while investment from Aljazira Capital is “testament to the importance of Open Banking in the region”.
Naif Almesned, chief executive officer and managing director of Aljazira Capital, said: “We believe in the importance of Open Banking and Open Data as transformative enablers empowering individuals and facilitating better financial inclusion. We are excited to support Tarabut Gateway and look forward to working together to provide Saudi individuals with better access to financial services.”
In Saudi Arabia, Tarabut Gateway has more than 60% of market coverage through partnerships with banks, including Alinma Bank, Arab National Bank, Saudi National Bank and Riyad Bank.
Tarabut Gateway was one of the first participants in the Saudi Central Bank’s (SAMA’s) regulatory sandbox, as part of the rollout of SAMA’s Open Banking framework.
“We’re thrilled to be backing Tarabut Gateway’s ambitious growth plans,” said Abdulwahab Al Betairi, founding partner of Pinnacle Capital.
“Their innovative approach to Open Banking and their strong focus on Saudi Arabia make them a perfect partner for us, and we’re excited to see them grow to new heights and contribute to the growth of the Saudi Arabian fintech space as part of the Vision 2030 strategy.”
Andrew Torre, regional president of Visa CEMEA, added that Open Banking is “a growing movement” to help consumers better access and manage their finances.
“We look forward to partnering with Tarabut Gateway, combining our global payments network and proven local solutions with their Open Banking platform to allow innovative financial services across the region,” said Torre.