Ayan Capital secures $3.6M to expand Islamic fintech in the UK

Ayan Capital secures $3.

• Ayan Capital secures $3.6M to expand its halal car financing and Islamic FinTech services in the UK.
• The funding will support the launch of new tech-driven Sharia-compliant financial products to address inefficiencies in ethical banking.

What happened: Islamic finance gets a tech push as Ayan Capital raises $3.6M

London-based Islamic FinTech company Ayan Capital has successfully raised $3.6 million (£2.8 million) in equity funding, marking a significant step in its mission to offer ethical and sustainable financial solutions. The funding round, led by Cur8 Capital, is set to fuel Ayan’s expansion of halal car financing and the development of other Sharia-compliant financial products in the UK.

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Ayan Capital has carved a niche in providing financial services that align with Islamic principles, particularly focusing on the private hire sector. The company’s flagship offering includes financing for electric vehicles (EVs) and low-carbon plug-in hybrid cars, catering to drivers on platforms like Uber, Bolt, and Wheely. This approach not only supports ethical finance but also aligns with the growing push for sustainable transportation.

In addition to its car financing services, Ayan recently introduced AyanPay, a financing solution for car repairs and home improvements. With no added interest, customers can finance up to $24,000 over 12 months. The newly secured funding will allow Ayan to roll out more innovative, technology-driven financial products to address inefficiencies in customer experiences, such as lengthy approval processes and hidden charges.

Why this is important

Ayan Capital’s success signals a rising demand for financial services that blend ethical principles with modern technology. In a competitive FinTech ecosystem, the company’s focus on Sharia-compliant solutions fills a crucial gap for Muslim consumers who want banking options that reflect their values.

The firm’s 97% month-on-month growth in halal car financing as of November 2024 demonstrates its scalability and the effectiveness of its proprietary underwriting technology. By maintaining a 0% non-performing loan rate on over $4.3 million (£3.4 million) in financing to date, Ayan has showcased both financial prudence and reliability.

This funding also positions Ayan to explore untapped markets, with ambitions to serve the 1.7 billion unbanked Muslims worldwide. By addressing this demographic, the company is well-placed to build a global Islamic neobank that bridges the gap between traditional banking and modern financial demands.

As environmental consciousness continues to shape consumer behaviour, Ayan’s focus on EV and hybrid financing resonates with a growing push for sustainable practices. These moves is crucial move in the step of ethical finance, where financial technology firms like Ayan can align profitability with purpose.