Qardus, An Ethical and Sharia-Compliant Financing Platform, Raises £318,837 via Seedrs

Qardus, an ethical and Sharia-compliant financing platform catering to social impact SMEs and investors, has successfully raised £318,837 through its crowdfunding campaign on Seedrs. With 17 days remaining in the campaign, the company has achieved 106% of its £300,002 target, attracting investment from 153 backers.

Based in London, United Kingdom, Qardus operates within the Finance & Payments (Digital Mixed B2B/B2C) sectors. Established in August 2019, the company currently holds a pre-money valuation of £8 million, offering 3.83% equity with a share price of £7.51. Qardus provides tax relief through the Enterprise Investment Scheme (EIS).

Notable business highlights include:

• Over £2.3 million in SME financing facilitated by Qardus.
• Growing investor base with an average investment balance of £8,200.
• A threefold increase in average revenue per deal (ARPD) compared to the previous year.
• Successful repayment of over £600,000 to date.

Qardus offers key features such as a secondary market and a Seedrs nominee with a minimum investment of £15.02. Additionally, direct investments can be made starting from £25,000.00.

In the United Kingdom, the British Muslim community, consisting of four million individuals, contributes over £31 billion to the country’s economy (based on 2012 statistics). However, this entrepreneurial community faces significant underserviced due to a lack of financial services aligned with their ethics and values, primarily stemming from Islamic prohibitions on interest-based transactions.

Read this: What Is the State of the Islamic Fintech Industry in Britain?

A particular gap in the market exists for Sharia-compliant financing options for SMEs and fixed-income products for investors. Globally, despite the Islamic finance market being projected to reach £3.69 trillion by 2024, 35% of SMEs in Islamic (OIC) countries face obstacles in obtaining financing due to the limited availability of Islamic financing options.

Qardus aims to bridge this gap by providing a level playing field for all SMEs, enabling their growth and continued contribution to the economy. Positioned as the UK’s first ethical and Sharia-compliant financing marketplace for social impact SMEs and investors, Qardus seeks to empower businesses and investors aligned with Islamic principles.

Qardus generates revenue through its current and future streams:

Current Revenue Stream:

• • SMEs are charged an arrangement fee of 5% (recently increased to 6%) based on the funds raised through the platform.
  • Investors are charged an ongoing annual servicing fee of 3% (recently increased to 3.5%) based on their invested funds. The total fees amount to 14% of the deal value over a 36-month facility tenure.

Future Revenue Stream:

• • Qardus plans to charge Financing as a Service (FaaS) fees for the use of its proprietary technology by Islamic financial institutions globally.
  • The company also aims to introduce banking fees in the future, as it envisions becoming an Islamic SME challenger bank. This expansion would require obtaining additional regulatory permissions.

Through its innovative approach and commitment to ethical and Sharia-compliant financing, Qardus strives to support the growth of SMEs while fostering positive social impact within the global Islamic finance market. Join us in embracing a new era Sharia-Compliant Financing Platform by exploring our platform today.