UAE-based fintech firm Qashio has successfully raised US$19.8 million in a funding round that combined both equity and non-equity financing. This funding round was led by existing investor Rocketship VC and saw participation from MoreThan Capital, regional banks, and family offices.

Founded in 2021, Qashio offers a spend management platform designed to help businesses monitor and control their expenses. The company intends to utilize the newly acquired funds to expand its operations into Saudi Arabia and enhance its B2B loyalty program throughout the MENA region. This recent funding follows a US$10 million seed round that Qashio raised in 2022.

Operating in 22 countries, Qashio reported profitability in the first quarter of 2025, with earnings surpassing US$1.2 million. The company’s plans to enhance regulatory compliance ahead of entering the Saudi Arabian market highlight the significant challenges fintech firms face in navigating the complex regulatory environment there.

Saudi Arabia’s fintech sector is undergoing rapid transformation under Vision 2030, with the government introducing new regulatory sandbox programs and licensing frameworks aimed at increasing fintech participation in the financial system. Recent analyses indicate that compliance with financial regulations, data privacy requirements, and Sharia compliance are critical challenges for fintech entrants, necessitating substantial investments in specialized legal and compliance teams.

The mixed equity and non-equity funding round that Qashio secured reflects a maturation in how fintech companies in the MENA region are raising capital. In 2019, the entire MENA fintech sector had raised only $237 million across 181 deals since 2015. However, by 2022, investments soared, with $819 million raised in the first half of that year alone.

The UAE continues to dominate the regional fintech landscape, accounting for 46% of all fintech startups and 69% of total funding. This positions Qashio’s Dubai headquarters as strategically advantageous for attracting investment. Qashio’s reported profitability before this expansion round distinguishes it from many regional peers that typically raise capital while operating at a loss.

Additionally, Qashio’s focus on its “market-leading B2B loyalty program” with Tier 1 partners, including Emirates, Air France, KLM, and major hotel chains, represents an innovative approach to corporate spend management. This loyalty-centric model addresses a market gap in MENA’s corporate financial services, where business spending has historically been disconnected from consumer finance loyalty ecosystems.

By incentivizing individuals within client organizations with personal rewards, Qashio’s loyalty program aims to create internal champions for adoption and improve customer retention in a crowded marketplace, distinguishing itself from traditional B2B fintech models that primarily compete on fees and transaction speeds.