Ziina, a Dubai-based fintech startup, has secured $22 million in Series A funding led by Altos Ventures. The company, which initially launched as a peer-to-peer payment app, has experienced significant growth by expanding its offerings to meet the needs of micro, small, and medium-sized businesses in the UAE.
One of the key factors that attracted investors to Ziina is the rapidly expanding SME segment in the UAE. With over 560,000 SMEs in the country, accounting for 94% of all companies and contributing 60% of the country’s GDP, there is a significant market to tap into. The demand for digital payment solutions among these businesses has been growing, with 77% of SMEs in the UAE adopting digital payments as of 2023.
Ziina recognized this opportunity and organically expanded its platform to cater to businesses. It developed a range of products tailored to the needs of SMEs, including a payment gateway for online payments, point-of-sale solutions for in-person payments, and payments via social media. The company also added CRM functions to help businesses track customer details and interactions.
Accessibility, cost transparency, and user experience are three critical pain points that Ziina addresses for SMEs in the payments space. The fintech allows SMEs to open accounts and set up payment processors in minutes, offers straightforward pricing with no hidden fees, and provides a dashboard for tracking and reconciling payments. These features have contributed to the company’s rapid growth, with 50,000 active users and a projected annual transaction volume of $300 million.
Ziina’s product-led growth strategy has been highly successful, with 55% of its customers coming organically and the rest from B2B referrals. However, as the company continues to scale and expand its financial services, it plans to onboard sales hires to drive further growth.
One of the key advantages that Ziina has over its competitors in the region is its banking license from the Central Bank of the UAE. This license allows the fintech to offer a wide range of financial solutions and earn revenue from the float when customers keep assets on the platform. Ziina is also venturing into expense management with the upcoming launch of its card product, ZiiCard.
Despite the competition in the region’s fintech sector, Ziina’s CEO, Faisal Toukan, sees ample market potential for the company. He aims to have 200,000 monthly active businesses on the platform within four years and become the “Nubank of the region.” With the support of the recent Series A funding and the participation of prominent investors, Ziina is well-positioned to achieve its ambitious goals.
In conclusion, Ziina’s success in securing significant funding and achieving substantial growth reflects investor confidence in the company’s potential. By catering to the needs of SMEs in the UAE and offering a comprehensive range of financial solutions, Ziina has positioned itself as a leading player in the region’s fintech landscape. With its product-led growth strategy and focus on customer experience, the company is poised for further success in the rapidly growing payments sector.