An Islamic Fintech startup IMAN, closes $1million in seed funding to introduce a new financial product that is Shariah-compliant in Muslim markets. The new platform uses technology to democratize access to finance in line with the region’s religious views and faith.
Founded by Rustam Rahmatov and Mark Zubov, IMAN introduces a tailored mobile platform for Muslim majority markets consisting of IMAN Invest, an investment platform, and IMAN Pay, a halal BNPL (buy-now-pay-later) solution, built around a vision to become one of the leading halal fintech companies in the Muslim world. With 30,000 active users, IMAN Invest manages over $1.2 million users from more than 1,000+ retail investors across 60 countries. Halal BNPL is also connected to more than 100 merchants offering goods and services across consumer electronics, household appliances, sports, healthcare, and education.
IMAN is unique in the BNPL domain in the sense that it not only provides halal BNPL but also builds halal funding sources for such service: investors invest and shoppers buy goods/services from IMAN via merchants through a “cost-plus” financing structure (“Murabaha”).
The $1 million round, announced on February 22, was completed by a group of eight VC and institutional investment funds with the participation of Battery Road Digital Holdings, Tesla Capital, UZCARD Ventures, MyAsiaVC, Le Mercier’s Capital, Block0, Vector Crypto Capital, and IT-Park Investments. In addition, a number of angel investors from the UAE, United States, Uzbekistan, Kazakhstan, and Singapore have supported the company’s plans to make halal BNPL and investments everyday accessibility, first in Uzbekistan and then globally.
The MENA region still has a very low penetration of credit cards as people are skeptical of traditional financial institutions taking advantage of them with interest and hidden fees. To address this gap in the market, a few BNPL players, such as Tabby and Tamara, have emerged over the last couple of years, however, the industry is still at a very early stage of development growing at ~90% per year.
The UAE BNPL Business and Investment Opportunities Report 2022 stated the BNPL payments are expected to reach $1822.7 million this year. This is attributed to the shift in consumer behaviour largely focusing on online shopping platforms and dependency on digital payments. BNPL payments have hence become one of the fastest-growing payments methods in the country.
Rustam Rahmatov, Founder & CEO at IMAN said “First and foremost, this investment will help us scale our technology in order to integrate seamlessly with retail partners across the different regions both online and offline to provide finance in seconds. Secondly, we’ll be able to roll out partnerships with merchants across all sectors more aggressively including beauty & fashion, FMCG, and services. And lastly, this investment empowers us to start exploring opportunities in other Muslim majority markets, including GCC, in early 2023. We are extremely excited to partner with our investors who have made investments in similar businesses in other geographies and bring with them a wealth of knowledge and expertise”.
