Wahed, a US-based Islamic-finance fintech firm, has agreed to acquire UK-based ethical financial platform and banking app provider Niyah, for an undisclosed amount.
Established in 2017, Wahed offers a Shariah-compliant robo-advisory investment platform in the UK.
The company has developed an easy-to-use digital platform with free portfolio recommendation.
Through its affiliated companies, Wahed offers access to Islamic value-based investing to residents of the US, UK and Malaysia
The acquisition is expected to underline the company’ commitment to provide its customers in the UK with access to interest-free financial products including digital bank accounts, debit cards and investments through its user-friendly mobile app.
After the launch of the digital bank in the UK, Wahed intends to expand its banking operations to other parts of the world, including North America, Asia, Europe and the Middle East.
Wahed CEO Junaid Wahedna said: “We are excited about welcoming Niyah to our business. Our vision of creating a parallel financial ecosystem that helps minimise wealth inequality is one step closer as clients will now be able to allow their savings to work for them without partaking in the traditional money lending infrastructure.
“It’s a perfect fit for us and for our customers. Outside the Islamic world the UK has a long-standing reputation as a leading fintech hub and a major centre for Islamic finance.
“Acquiring Niyah and launching our first banking services here enables us to leverage the opportunities that Britain’s unique financial hub brings, and to tap into a wide and underserved customer base that is receptive to our service offering.”
Niyah is a fintech start-up focused on financial products for the Muslim community, delivering advanced solutions, including money management, budgeting, savings, investments, supporting charities, SME financing for businesses and insurance.
The acquisition of Niyah follows recent investment secured by Wahed in a funding round led by Saudi Aramco Entrepreneurship Ventures, a venture capital investment arm of Saudi Aramco.
Niyah CEO Ali Abdulkadir said: “We are delighted to have signed this deal with Wahed. The acquisition goes to the heart of the company’s vision to continue to grow an Islamic finance marketplace that is driven by the needs of the consumer and their rising demands for ethical investments.
“Wahed has an excellent track record for delivering services to an underserved market, and with the support of Railsbank, it can continue to expand its banking offering beyond the UK.”
