Abu Dhabi-based FinTech company Astra Tech, through its subsidiary Quantix Technology Projects, has secured $500 million in funding from Citi. This asset-backed securitisation financing is among the largest ever for a UAE FinTech firm.

According to The National UAE, the announcement was made during the Abu Dhabi Finance Week, where the company shared its plans for the funds. Quantix, which recently obtained a finance company licence from the UAE Central Bank, will use the funding to expand its CashNow consumer lending platform. This licence allows Quantix to offer services like lending, credit, and microfinancing.

Tariq bin Hendi, board member and managing director of Astra Tech, highlighted the significance of the deal, stating that the FinTech sector is evolving rapidly and attracting global investment. He also mentioned that the UAE, and the GCC region, continue to demonstrate strong economic growth despite global challenges. The funding from Citi will help expand Astra Tech’s Ultra app ecosystem, he added.

Astra Tech, which previously raised $500 million in funding last year, has been actively building its portfolio. The company owns several platforms, including the Botim video calling app, which has been developed into the Ultra app. This app operates in 155 countries with over 150 million users, offering services such as VoIP calling, international money transfers, bill payments, and UAE visa services.

The region’s FinTech sector has been experiencing significant growth, attracting global investors. Other notable funding deals in the MENA region include $700 million secured by buy now, pay later platform Tabby and $340 million raised by Saudi Arabia’s Tamara, both in late 2023.

Reports from the World Economic Forum and McKinsey & Company reveal that between 2015 and 2023, the MENA region had the second-fastest growth rate globally for FinTech venture capital funding, with an annual average growth of 33 percent. The sector has continued to thrive, even when other regions saw a decline in funding between 2021 and 2023.

Globally, the FinTech industry remains a significant driver of innovation, becoming the second-largest generator of unicorn companies after enterprise software. By 2023, there were approximately 362 FinTech unicorns worldwide, with nearly 150 having achieved successful exits.