At a time when some are distrustful of digital assets, the UAE has become a key driver of the sector, believing in its potential to transform the future of the financial sector and supporting early business ventures in the space, with instruments such as the Hub71 Digital Assets.
Fuze is a pioneer in this space, helping to shape the way that financial institutions, banks, FinTechs, Web3 organisations and enterprises onboard blockchain processes and crypto products. In 2023, the startup announced a seed funding of $14 million, one of the largest for a digital assets’ infrastructure startup in the region.
The Co-Founder and CEO of the company is Mohammed (Mo) Ali Yusuf, a seasoned international business leader focused on advancing e-commerce and crypto sectors through regulatory compliance, strategic alliances and operational excellence. Additionally, he serves as Co-Chair for Digital Assets at the MENA FinTech Association.
In a conversation with Finance Middle East, Yusuf reflected on his journey as an entrepreneur in the world of cryptocurrencies and digital assets and provided advice to future founders.
What drove you to join the startup world?
I’ve always been a fan of technology that creates impact. From the early days of my fintech career, whether building payment systems for central banks, driving adoption of digital payments at Visa or growing digital payment acceptance at Checkout.com, enabling payments across emerging markets creates new opportunities and that’s what excites me.
Having re-entered the digital assets world in 2021, I saw the transformative potential of blockchain technology to revolutionise financial infrastructure for the Middle East, Africa and Turkey region. With a single internet connection, blockchain enables anyone to access the world of financial services in a faster and cheaper way. I firmly believe in the power of digital assets to transform finance, and through a combination of innovation and regulation, we are already making excellent headway at Fuze.
Why did you choose the Middle East as the place to start/expand the business?
Digital assets is a rapidly growing sector and the Middle East is poised to play an important part in that acceleration. Chainalysis estimates that over a year-long period, more than $35 billion in crypto transactions was received in the UAE alone. Meanwhile, the revenues of MENA businesses supporting the digital assets sector are set to rise above $450 million this year, with projections that it will continue to grow at more than 8% per year.
With Abu Dhabi’s evolving digital assets infrastructure and ample networking opportunities through Hub71, the UAE capital is well-positioned to leverage digital assets to enhance financial inclusivity.
This initiative is particularly relevant given that over 136 million people in the Middle East remain unbanked. Digital assets have significant potential to improve financial access, offering more people the chance to engage with financial services. For Fuze, this means benefiting from a valuable support network, fostering innovation, and tapping into a large, underserved market. The dynamic environment and advanced infrastructure in Abu Dhabi provide an ideal setting for developing and testing new digital asset solutions, aligning perfectly with our expansion goals and integrating us into a thriving ecosystem.
Describe the region’s startup scene in three words.
Collaborative: It is so important for start-ups to work together to find solutions. Regulators in the UAE are open to dialogue at the table and understand business models, and collaborative solutions. As the Co-chair of the MENA Fintech Association’s Digital Assets Working Group, it’s clear to see that there is a productive dialogue and clear interest in building momentum around digital assets in the region.
Magnetic: There’s a lot of talent being attracted from within the region and internationally who are excited at the opportunities presented by MENA’s start-ups.
Bold: Governments within the region are visionary and do not settle for the status quo (like in North America and Europe). There is a constant desire to make progress, and that relentlessness transcends to the start-ups across the region.
Is there something that has surprised you in your journey?
One area where I have been pleasantly surprised is the supportive and cooperative nature of regulations and frameworks across the region. In other parts of the world, there is a fear that digital assets are disrupting finance, but here that is seen as a huge opportunity. The future of finance will be built on blockchain and many regional jurisdictions, particularly the UAE capital Abu Dhabi, recognise its potential to play a pivotal role on a global stage.
“In other parts of the world, there is a fear that digital assets are disrupting finance, but here that is seen as a huge opportunity.”
What are (in your view) the keys to approaching investors successfully?
That’s not an easy question to answer as every investor is different. Firstly, do your research. There are plenty of online resources to assess potential investors and determine what kinds of start-ups they might be most interested in. If you can use your existing network, or be introduced by mutual connections, that can enhance your chances of lining up productive meetings. Have they ever made an investment into the sector that your business operates in? Does your company have any synergies with their existing investments? Have they got a track record of successful investments and exits? Their strategic guidance can be worth its weight in gold, just as much as the capital that you raise. Lastly, you need to have a rock-solid proposition that demonstrates how your business is different, how it is going to scale and what any investment capital will be used for.
What was the most challenging part of raising funding and how did you overcome it?
The most challenging aspect of securing funding was doing so during the ‘Crypto Winter,’ a tough period for the industry marked by setbacks like the FTX debacle. Staying optimistic was crucial, as was identifying investors who shared our vision for the long-term potential of both the industry and our business.
What is the best piece of financial advice you have received?
Fundraising should not be viewed as a measure of success in itself. Rather, it signifies the beginning of a new chapter for a business. Securing funding is just the starting point; the real challenge lies in executing the commitments and promises made to investors. It’s essential to focus on translating that initial capital into tangible results and growth, as true success is demonstrated through the impact and progress achieved.
What has been your biggest success and your biggest failure?
My biggest success has been leading Fuze through a period of significant industry upheaval and securing the necessary funding to kick off our journey. Navigating the challenges of a volatile market and securing strong investors who shared our long-term vision was a rewarding experience.
On the flip side, my biggest failure was initially underestimating the complexities of setting up a regulated business. This misjudgment led to some surprises, and frustrations, as we were unable to meet growing customer demand. However, it was a valuable learning experience that pushed us to refine our target setting and align our expectations internally.
What is the best quality a leader can have?
The best quality a leader can have is resilience. Building a startup is incredibly challenging, and this is especially true for a regulated company. A resilient leader maintains a strong conviction and a positive mindset, both internally and externally, even when faced with obstacles. Celebrating successes, no matter how small, helps keep morale high. Additionally, taking the time to understand and address employees’ concerns is crucial for ensuring alignment and fostering a unified, motivated team.
Where would you like to be in five years’ time?
In five years, I envision Fuze making significant strides in our long-term journey. Our goal is to build a company that defines a generation, fundamentally transforming financial infrastructure through blockchain technology. We are committed to this mission for the next decade and beyond, working towards creating lasting impact and driving innovation in the industry.
