KUALA LUMPUR: American financial technology or fintech and services company Wahed is confident of raising some US$50mil (RM239mil) over the next five years to be invested in startups via its fully syariah-compliant equity crowdfunding (ECF) platform, Wahed Ventures.
Wahed founder Junaid Wahedna said the company was in talks with “tens of thousands” of potential investors.
“We have got serious adoptions. We are talking about tens of thousands of people who have signed up for this product and we have not launched it yet.
“We ride on the earlier stage tickets, we are talking about US$100,000 to US$250,000 just to get people off the ground,” Junaid said at the launch of the ECF platform.
He said the platform, which will be available to the public next month, will only invest in Malaysian companies.
“However, we can raise money from anywhere in the world. Basically, these Malaysian deals can be distributed in the United Kingdom, United States, globally – that is the foreign direct investment aspect of it. We can use our global distribution to raise money for the Malaysian companies,” he added.
Wahed Ventures, which has been granted in-principle approval by the Securities Commission, promotes innovation and halal entrepreneurship by empowering typically under-represented founders with access to capital.
The investments that will be offered on Wahed Ventures are structured to adhere to syariah principles. These principles emphasise a balanced risk-reward sharing system between investors and business owners.
Junaid said: “Wahed Ventures unlocks a new asset class for these investors, simultaneously providing untapped opportunities for businesses with potential.
“We are creating an ecosystem that fosters partnership between investors and entrepreneurs who share the same values.”
Through the Wahed app, Malaysians have the opportunity to grow their wealth through vetted syariah-compliant investment offerings and shifting capital away from interest-bearing financial products.
Of the majority of Wahed’s 300,000 user base, nearly 85% comprise young adults aged between 18 and 35 and belong to the B40 and M40 income groups. They are enjoying a return of 11.3% per annum on their investment.
The launch of Wahed Ventures aims to further address this gap head-on by offering an accessible entry point for investment into businesses, with a minimum set as low as RM50.
Wahed also provided a sneak preview of its real estate investment product which allows investors to purchase fractions of a property, enabling them to earn income from rent and capital appreciation in the long run.
“We have a special-purpose vehicle to buy the property and we allow anyone to invest any amount of money and we manage everything and the rent comes straight into the app,” Junaid said.