Islamic investment platform Wahed secures US$50m funding

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Islamic investment fintech Wash raised US$50 million in a Series B funding round led by Wa’edthe venture capital arm of the Saudi Aramco Entrepreneurship Center, as well as footballer Paul Pogba.

Wahed said the cash would support his current growth phrase; the New York-based company plans to launch an ethical neobank on its platform that will allow users to meet their banking and investment needs in a “super-app”.

Currently, Wahed offers the opportunity to invest ethically in a simple and affordable way, in particular in accordance with the principles of Islamic finance. It has gained consistent support since its inception and now has over 300,000 customers in total.

“Closing the Wealth Gap” with Financial Tools

Fahad Alidi, Managing Director of Wa’ed, said, “The rapid popularization of fintech solutions and their influence in promoting financial literacy and inclusion around the world has created appropriate urgency for fintech products that are both ethical and easily accessible. available to individual investors. Fintech leaders like Wahed recognize the role they play in such a crucial global context, and it’s their ambition to deliver on that vision that makes us proud to partner with the pioneering team as they work to unlock the digital potential of the financial industry.

In addition to securing new capital, the company is appointing three new members to its board of directors – founder of fintech unicorn Truebill, Haroon Mokhtarzada; former SEC Director Lori Richards; and Bill Haney, president of Enhesa, which advises companies on EHS and product compliance issues.

Bill Haney says, “I am thrilled to join Wahed’s mission to bridge the wealth gap through stocks, finance and technology. Its digital tools have enormous potential to make the world of finance more accessible to those who were previously excluded. I look forward to contributing to its long-term growth.

Islamic finance remains an “underserved” market

Founded in 2017 by Junaid Wahedna, the platform seeks to simplify hilal investing. Currently it is targeting some of the most populous Muslim countries in the world – such as Indonesia, Malaysia and Nigeria – but with strong financial backing it will be able to target new markets where the demand for ethical investing is high. . Wahed is also available for UK and US residents.

According to the Pew Research Center, there are 1.8 billion Muslims in the world. Their religion binds them to a set of financial principles; wealth must be generated through legitimate trade and asset-based investments, and all investments must have a social or ethical impact. This has created a demand for specific solutions tailored to Muslims. Over the past few years, as fintech has evolved, more and more Islamic fintechs like Wahed have come online.

Ali Rahimtula, a partner at Cue Ball Capital, which has previously invested in Wahed, said, “This increase will help support Junaid and its team’s mission to bring financial services to this important but underserved demographic. We look forward to Wahed’s next phase of growth.

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