Wahed Invest

Wahed Invest is a robo-advisory platform specifically for Shariah-compliant investments (follows Islamic investment principles). As such, the platform does not include investments in firms with excessive debt or firms in industries such as tobacco, alcohol, firearms, “impure food stock”, adult entertainment, gambling, etc. Investments usually go to real estate, Islamic bonds (Sukuk), and gold. Investors can thus be certain that their investments are ethical, which also suits socially responsible investors who are not Muslim. On top of that, the platform provides an investing ground for Muslims who might have felt excluded from mainstream financial service companies. The platform is currently available to residents of the US, UK, and Malaysia.

Wahed Invest is accessible with a minimum balance of just USD 100 which makes it extremely convenient for retail investors with low capital compared to some platforms such as Assetbuilder or NUKU, which require a minimum of USD 50,000 to invest. More importantly, Wahed Invest has a proprietary technology that allows users to buy fractional shares, which enable users to buy a fraction of a share’s price. Therefore, the platform allows diversification even if a particular user’s investment size is small. Users can also do unlimited deposits or withdrawals with no penalties. The firm monetizes by charging a fee between 0.49% per year for investments of USD 250,000 and above and 0.99% per year for investments between USD 100 to USD 249,999. In June 2020, the company raised USD 25 million in an unknown series round, which accounted for around 63% of the total funding.

Key customers and partnerships

In June 2023 , Wahed Invest partnered with UK-registered charitable organization iWaqf to offer a dedicated Islamic endowment offering (i.e., Waqf Fund). Through this partnership, Wahed Invest planned to support the development of innovative product offerings to support charitable causes and grow community donations aligned with Islamic principles.

Funding and financials

In June 2022, it raised USD 50 million in Series B funding led by Wa’ed Ventures (the venture capital arm of Saudi Aramco Entrepreneurship Center), with a post-money valuation of nearly USD 300 million. The company planned to use the funds to support its business growth in the Middle East and North African region as well as the development of Niyah, its neobank platform, which was to be launched in the UK toward the end of 2022.