New York-based fintech firm Wahed Inc. is set to receive $50 million in a Series Be funding. The financing was supported by a consortium of investors, as the firm prepares for the launch of its digital banking platform in the UK.
The round is led by Wa’ed Ventures, while French footballer Paul Pogba, who is the brand ambassador, participated in the round. HSBC was appointed as the lead financial advisor for the funding round. Other institutions and strategic family offices also participated in the round.
The Funding Raises Wahed’s Valuation To $300 Million
Chief Executive Officer of Wahed, Junaid Wahedna, commented on the funding. He stated that the exercise will take the valuation of the fintech firm to $300 million. The plan is to use the additional capital to support the current growth of the company as well as its neobank expansion in Europe.
Wahed was established in 2017 and is now considered one of the most successful startups in the Islamic economy. It handles a long list of portfolios, which includes pension portfolios for UK employees, halal workplaces, as well as two ETFs in the US. The company’s US-based platform has authorization from nine jurisdictions, including operating licenses in the UK, the US, and Malaysia.
Wahed last raised funds in June 2021 when it secured $20 million in a financing round led by the Venture Capital arm of Saudi Aramco. Other shareholders supporting Wahed include Rasameel, Dubai Cultiv8, and Cue Ball Capital. The company stated that it has more than 300,000 global customers as of June 2022.
Wahed To Expand Operations With The Capital
The latest funding round is evidence that shareholders and investors have more confidence in its business model of Wahed, especially at a time when the economic environment is not favorable.
Founding partner at IFG, Ibrahim Khan, while commenting on the development, noted that the latest funding serves as a more validation for the entire Islamic fintech ecosystem. He added that the community is looking excitedly to see how the company expands with the new fund infusion.
This fundraising comes after the US Securities and Exchange Commission (SEC) charged Wahed in February for compliance failures and making misleading statements. Wahed paid a $300,000 fine after agreeing on a cease-and-desist order.
