Tim Draper, a notable Silicon Valley investor, has led a $1.6 million pre-Seed round for Saudi fintech company Takadao. Takadao specializes in community-owned financial services based on blockchain technology, with a focus on providing Shariah-compliant savings and loans (Takaturn) and cooperative life insurance products. Based in Riyadh, Saudi Arabia, the company runs its operations from Singapore and has received investments from BIM, Core Vision Ventures, and Prince Sultan bin Fahad bin Salman Al Saud, along with Draper Associates.
With the global Muslim population projected to increase significantly over the next two decades, the demand for financial services that adhere to Islamic principles is on the rise. Takadao steps in to bridge this gap, as it extends the reach of Islamic finance through its blockchain-based shariah-compliant loan and insurance offerings, catering to populations worldwide, including those in underserved banking sectors.
Co-founder and COO Sharene Lee emphasized Takadao’s unique approach, highlighting the company’s commitment to prioritizing consumer well-being by providing community-owned financial services, ensuring that user benefits take precedence. The decentralized blockchain and cryptocurrencies form the backbone of this novel system. Takadao’s product lineup includes Takaturn, which follows the ROSCA concept, and Takasure, a cooperative insurance product based on the Takaful model, set to launch in June 2024.
This signifies Tim Draper’s initial investment in a Saudi-based startup, underscoring his legacy of championing disruptive tech ventures, such as early stakes in Baidu, Skype, and Hotmail. Draper’s support for Takadao stems from his conviction in the potential impact of its authentic blockchain-based and decentralized approach, aligning with his endorsement of Bitcoin and decentralized finance. CEO and co-founder Morrad Irsane conveyed excitement about Draper’s involvement, emphasizing his forward-thinking approach and embrace of diverse cultural viewpoints. Currently, Takadao boasts a thriving community exceeding 10,000 members, with a weekly growth rate of 5%.