Dubai-based fintech startup, Fuse, has raised $6.6 million in seed funding to simplify cross-border payments across the Middle East and North Africa (MENA).
This funding will bolster the development of Fuse’s platform, designed to break down obstacles in the fragmented MENA banking space. The region’s complex regulations and banking systems have traditionally made it difficult for global businesses to operate smoothly.
Fuse, however, is stepping in with a solution to this long-standing problem. Founded in 2023 by George Davis, a former co-founder of BVNK, and James Smith, the company’s Chief Technology Officer, Fuse is offering a virtual International Bank Account Number (IBAN) product aimed at global businesses wanting to move money seamlessly within MENA.
This product is commonplace in Europe, but Fuse claims it is the first to offer such a solution for MENA. As Davis put it, “We’re currently the only provider of virtual IBANs in the Middle East… it simply didn’t exist.”
The platform provides businesses with USD-denominated virtual IBANs for international transactions and local UAE IBANs for regional payments. The advantage of this offering is that companies can now perform cross-border money movements and local payouts without the need for complex local banking setups, foreign exchange (FX) handling, or navigating regulatory issues.
Many businesses, especially those based in the US, Europe, and Asia, have long struggled with entering the MENA region. Traditionally, they’ve faced two choices: work with smaller local payment firms that lack scale or rely on larger global players that lack local licences and often fail to provide reliable partnerships.
Fuse finds its niche in the middle, offering a fully licensed, scalable infrastructure solution for businesses needing access to the MENA region. “Fuse is built for the Middle East,” Davis said, drawing a distinction between Fuse and its global counterparts, such as Visa-backed Currencycloud.
Fuse’s solution is already in demand. The company now serves over 20 clients, including well-known businesses such as DLocal, RemotePass, and platforms like Deel, Airbnb, and Etsy.
The platform’s main strength lies in its ability to process payments instantly and efficiently. Clients can use the platform to issue virtual IBANs for employees or customers, enabling them to pay salaries or make other local transactions without the need for a local presence or entity.
One of Fuse’s unique features is its ability to support businesses in a wide range of sectors, including payroll, remittance services, and e-commerce.
For example, Fuse enables employers in the US to pay salaries to employees in the UAE, all while bypassing the need for complex compliance or residency requirements.
With the platform’s smart routing and real-time notifications, businesses can be assured that payments are processed accurately and swiftly.
The funding round, which was led by Northzone, a European venture capital firm, also saw contributions from Flourish Ventures, Alter Global, and notable individual investors, including Olugbenga “GB” Agboola, CEO of Flutterwave, and George Makhoul, the former president of Morgan Stanley MENA.
Sanjot Malhi, partner at Northzone, highlighted the importance of Fuse’s approach, noting, “The Fuse team is transforming payment infrastructure in one of the world’s fastest-growing markets… their ability to simplify MENA’s complex cross-border flows is exactly what the region needs.”
Fuse plans to use this fresh capital to expand its team and secure additional regional licences. The company aims to extend its services beyond the UAE, expanding into countries like Saudi Arabia, Egypt, and Jordan.
This comes at a time when the region is experiencing an explosion in e-commerce and digital payments, creating a fertile ground for businesses like Fuse to thrive.
For now, Fuse is firmly anchored in the UAE, but with plans to scale quickly, it looks set to become the go-to company in the MENA fintech sector.
