Saudi fintech Takadao raises $1.6M in pre-seed round led by Draper Associates
Founded in 2021, Takadao leverages blockchain technology to offer Shariah-compliant savings and loans (Takaturn) and cooperative life insurance to the Muslim population.
Takadao, a Saudi Arabia and Singapore-based fintech that builds community-owned financial services on blockchain, raised $1.6 million in a pre-seed round led by Silicon Valley investor Tim Draper.
The round also saw participation from venture investors BIM, Core Vision Ventures, and Saudi Prince Sultan bin Fahad bin Salman Al Saud, the company said in a statement on Wamda.
With this, Draper made his first investment in a Saudi-based startup. He has previously invested in Baidu, Skype, Hotmail, Robinhood, and Coinbase.
Sharene Lee, Co-founder and COO of Takadao, said the company aims to create community-owned financial services in unstable economies with weak currencies and high inflation. “Many of us, Muslims and otherwise, live in countries with unstable economies, weak currencies and high inflation. There is low access to the traditional banking system coupled with increasing distrust.
Founded in 2021, Takadao leverages blockchain technology to offer Shariah-compliant savings and loans (Takaturn) and cooperative life insurance to the Muslim population.
Takadao offers two complementary products—Takaturn and Takasure. Takaturn is based on the ROSCA concept, known as Jamaiyah in the Middle East, Ballot Committee in Pakistan, Tontine in Africa, and chit fund in India, while Takasure is a cooperative insurance product in development, expected to launch in June 2024.
The startup has a community of more than 10,000 members, growing by 5% week on week.
"Muslim traditions have shaped the world for centuries, influencing various aspects such as number systems, algebra, navigation, universities, hospitals, and optometry. Blockchain technology offers a chance to build Islamic financial infrastructures aligned with decentralisation and community ownership, benefiting everyone regardless of their religion or location," said Morrad Irsane, Co-founder and CEO of Takadao.
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Edited by Suman Singh