#London #UK #Digital Bank #Ayan Capital #halal finance

Ayan Capital Secures Significant Funding for Halal Digital Bank

Ayan Capital, a leading Islamic fintech company in the UK, has made headlines with its recent acquisition of a substantial funding facility worth up to £75 million (approximately $100 million). This investment, originated by respected investment manager Triple Point, will serve as a pivotal resource as Ayan moves closer to establishing its halal digital banking services.

Since its inception in early 2024, Ayan has experienced remarkable growth and engagement. To date, over 150,000 individuals have initiated applications for its halal car finance products, establishing a strong customer base. Furthermore, Ayan boasts an impressive Trustpilot rating of 4.9, underscoring the high level of satisfaction among its users. Notably, over 60% of website visitors take the crucial step of beginning an application process, and the company has managed to keep its loss rate below the industry average.

With a workforce predominantly composed of engineers, Ayan has prioritized technological advancements, opting to develop its systems in-house. The UK is home to nearly 50 million Muslims, making it a vital market for halal financial services. Ayan estimates that Muslims in the UK control around $90 billion in bank deposits and account for $40 billion in annual financing needs. Although many Muslims currently depend on conventional banking, a staggering 85% express a willingness to utilize halal products if they are competitively priced.

The founders of Ayan Capital previously succeeded with Alif, a fintech and banking enterprise that catered to over 10 million clients across Central Asia. Leveraging this experience, Ayan Capital is initially focusing on halal car finance, with plans to expand into halal credit cards, savings accounts, and a comprehensive digital banking platform.

The recently secured funding will greatly enhance Ayan's capacity to support new originations while simultaneously reducing its funding costs. As part of its growth strategy, Ayan plans to initiate a Series A funding round in the coming months to finance its banking license application.

Major investors backing Ayan include Cur8 Capital, Empakt Ventures, IT Park Ventures, and Caucasus VC. The company's financial operations adhere to the Ijara wa Iqtina structure, which involves Ayan purchasing and owning each vehicle for the duration of the financing term, thus bearing the ownership risk. Customers are charged fixed monthly rentals, which lead to ownership by the end of the term. Independent Shariah advisors review contracts annually, ensuring compliance with Islamic finance principles. Ayan also offers enhanced support for unexpected mechanical and electrical repairs through AyanCare.

Ellis Diamanti, Head of Specialty Finance at Triple Point, praised Ayan for combining a stellar management team with a technology-first approach, resulting in a customer experience that caters to the rising demand for compliant financial products. Abdullo Kurbanov, CEO and co-founder of Ayan, expressed optimism regarding the facility's impact on their growth. He reiterated their commitment to providing competitive services for both halal finance seekers and a broader audience, all while setting higher standards for consumer expectations.

As Ayan Capital continues to pave the way in the halal finance sector, its upcoming developments promise to transform the financial landscape for Muslims in the UK and potentially beyond.