Wahed Inc, a U.S.-based Islamic-finance fintech startup backed by Saudi Aramco, will acquire Niyah Ltd, a British company that runs a digital banking app designed for the Muslim community, the companies said on Thursday.
Wahed hopes the acquisition will enable it to broaden its offering and eventually become a one-stop-shop for Islamic law-compliant digital financial products and services, it said.
The financial terms of the deal were not disclosed.
Launched in 2017, Wahed runs an online investment management platform in the United States which ensures its portfolio does not include investments in companies in restricted sectors such as gambling, firearms and alcohol.
The deal will allow Wahed to provide its customer base with more interest-free financial products, such as digital bank accounts and debit cards in the UK and elsewhere globally, it said.
It comes as more tech-savvy startups seek to tap the growing demand for financial products and services aimed at the Muslim community, and follows a $25 million investment in Wahed led by Saudi Aramco Entrepreneurship Ventures, the oil conglomerate’s venture capital arm.