AI infrastructure startup MidLyr has raised $2.5 million in pre-seed funding to redefine how banks and fintechs manage risk and streamline their financial operations.
The funding round, led by Silicon Badia with participation from Wedbush Ventures, Hustle Fund, DCG, and Story Ventures, will enable the company to expand hiring and strengthen partnerships across the United States, Egypt, and the wider MENA region.
Co-founded by Egyptian-born Wael Elsahhar and Ruochen Ren, MidLyr aims to build a new class of intelligent, compliant, and adaptive automation tools that help banks operate with greater efficiency and security.
“Their approach combines technical depth with a deep understanding of financial operations, and that’s what it takes to build enduring infrastructure in this space,” said Namek Zu’bi, Founder and Managing Partner at Silicon Badia.
What does MidLyr do?
MidLyr develops AI-powered infrastructure designed to automate and simplify the complex and often rigid workflows within financial institutions.
Its platform aligns AI agents with existing banking regulations, policies, and operational data, ensuring automation that is both smart and compliant.
In essence, the startup seeks to replace manual controls with structured, intelligent systems that reduce human error and institutional risk.
“Our mission is to give bank operators the intelligent, compliant tools they deserve, so they can serve customers better and reduce risk,” said Wael Elsahhar, MidLyr’s CEO and Co-founder.
By doing so, MidLyr aims to create a durable digital foundation that banks and fintechs can trust to handle high-stakes operations safely.
Plans for the new fund
With the new capital injection, MidLyr plans to accelerate product development, hire top talent, and expand its partnerships with leading banks and fintechs.
The company is currently recruiting across engineering, data science, design, and compliance roles to strengthen its technical backbone.
Elsahhar noted that the company’s growth strategy includes building a diverse, cross-regional team:
“We are excited about building a team across the US and the Middle East. We are betting on the depth of talent in engineering and data science in the region as a core long-term differentiator.”
This strategic expansion reflects MidLyr’s intent to position itself as a global AI infrastructure leader rooted in both Western and Middle Eastern innovation ecosystems.
The tech behind MidLyr’s vision
At its core, MidLyr is building AI infrastructure for trust and compliance, two cornerstones of the financial sector.
Unlike typical automation tools, its technology embeds regulatory awareness directly into AI workflows, ensuring that automated decisions follow both internal policies and external legal frameworks.
This blend of intelligence, compliance, and adaptability sets MidLyr apart in a market increasingly wary of unchecked AI tools.
The startup envisions a future where AI-powered, bank-grade automation not only boosts efficiency but also redefines institutional trust in financial operations.
Talking Points
MidLyr’s $2.5 million pre-seed funding represents more than a financial milestone, it is a timely shift toward the intelligent automation of global banking systems that have long relied on outdated manual processes.
In an era where financial institutions face growing compliance demands and operational risks, MidLyr’s vision of embedding regulatory awareness into AI workflows is both innovative and necessary.
However, its real test lies not in technological ambition but in execution, building AI systems that financial regulators and institutions can genuinely trust requires extraordinary precision, transparency, and accountability.
While its cross-regional expansion strategy could unlock diverse talent and perspectives, scaling across jurisdictions with differing regulatory frameworks may prove challenging.
Notwithstanding, MidLyr’s model underscores a critical truth such that the future of banking will not depend on replacing humans with machines, but on empowering humans with smarter, compliant AI infrastructure that reinforces trust rather than undermines it.
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