Wahed, a New York based digital halal-focused ethical investing platform has raised $7 million in seed funding, the company announced earlier today. The investment came from BECO Capital, one of the leading VCs of MENA and Cue Ball Capital, a Boston-based VC that invests in early-stage startups.
Founded by Junaid Wahedna in 2015, Wahed that claims to be the first Shariah complaint automated investment platform in the world allows investors from different income brackets to invest their savings ethically. The minimum investment that can be made through the platform is $100. Currently, only US citizens and residents can open an account to invest through Wahed. They’re required to have a US social security number and a permanent address. The startup is next expanding to United Kingdom and has opened pre-registrations already.
“The experience at Wahed is truly automated. The Wahed Platform has been designed and developed to allow clients with little financial knowledge to invest their savings with institutional level diversification. Wahed employs Modern Portfolio Theory to diversify investor portfolios, minimize risk, and maximize returns.”
The startup has a full-time ethical board that conducts three different types of screenings to ensure that the users of Wahed invest in accordance with Islamic principles. The investments are screened financially for presence of interest and business-wise to restrict industries that include alcohol, gambling, arms, tobacco and others.
“We know that practicing Muslims believe in a complete approach to embracing Halal values but until recently, have lacked the ability to easily incorporate investing into their ethical practices,” said Junaid Wahedna, CEO, Wahed .
“With the addition of 401k and IRA rollovers to our investing platform, Wahed is taking the next step toward being the preeminent, full-service Halal-focused investing platform for the Islamic community, giving Muslims and other Americans the opportunity to confidently and ethically invest in their futures.”
With its democratizing platform, ethical review board, and expansive offering, Wahed has gone to extensive measures to create an investing platform for this very large market,” said Ali Rahimtula, Partner, Cue Ball Capital. “Cue Ball is thrilled to invest in Wahed, as we expand our portfolio of world-class financial technology companies and purpose-driven investments.”
“Traditional wealth management does not cater to the needs of the masses,” Amir Farha, CIO, BECO Capital. “Wahed Invest is leveraging technology to provide a more affordable and efficient medium for the majority of Muslims to preserve their wealth.”
This is the second time Wahed has raised an investment. It had raised $5 million less than six months ago in June this year.