Ayan Capital, a UK fintech focused on halal financial products, has secured a senior Shariah-compliant facility of up to £75 million, or approximately $100 million, originated by investment manager Triple Point.
The financing will support additional car-finance originations as Ayan prepares to apply for a UK banking license and works toward its longer-term goal of building a full-service halal digital bank.
Ayan launched in early 2024 with halal car financing and said more than 150,000 people have since started an application through its platform. More than 60% of visitors to its website begin an application, while the company reports a loss rate below the industry average and a 4.9 rating on Trustpilot.
Technology is a significant part of Ayan’s strategy, with engineers representing roughly two-thirds of its workforce and the platform built internally.
The company is targeting a large population of Muslim consumers that it believes remains underserved by conventional financial products. Ayan estimates Muslims in the UK hold approximately $90 billion in bank deposits and take out around $40 billion of financing annually. It also cited research indicating that 85% would use halal financial products if pricing were equivalent to conventional alternatives.
Ayan’s founders previously helped build Alif, a fintech and banking group serving more than 10 million customers across Central Asia. The team is using a similar expansion model in the UK, beginning with vehicle finance before adding cards, savings and eventually a broader digital banking platform.
The new facility is expected to lower Ayan’s cost of funding while allowing it to increase originations and potentially offer more competitive pricing.
Ayan also plans to raise a Series A round in the coming months to finance its banking-license application. Existing backers include Cur8 Capital, Empakt Ventures, IT Park Ventures and Caucasus VC.
Ayan structures its vehicle financing through Ijara wa Iqtina. Under that arrangement, Ayan purchases and retains ownership of the vehicle during the financing period; customers make fixed monthly rental payments, and ownership transfers to the customer at the end.
Its contracts are reviewed annually by independent Shariah advisers. Through AyanCare, the company also assumes additional responsibility for certain unexpected mechanical and electrical repairs.
KEY QUOTES:
“Ayan pairs an impressive management team with a technology-first platform, providing an excellent customer experience while meeting the growing appetite for Shariah-compliant financial products.”
Ellis Diamanti, Head of Specialty Finance at Triple Point
“There is a lot to do, but this facility lets us serve more customers, more competitively. Over time we want to build a challenger bank that is open to everyone, whether they are looking for halal finance or not, and that raises the bar for what customers should expect.”
Abdullo Kurbanov, CEO and Co-Founder of Ayan Capital
