Following its expansion into Saudi Arabia, Capifly, a Jordan-based provider of non-dilutive Shariah compliant venture capital to technology start-ups, confirms it has raised US$1 million in pre-seed funding. It is also in the advanced stages of setting up a US$10 million non-dilutive capital facility.
Founded last year by Dunya Bashiti (who was later joined by co-founder Ahmed Jaradat), Capifly has won the backing of Oasis500, BLDR Ventures, Joa Capital, Ahli Fintech and angel investors from Jordan and Saudi Arabia.
Capifly structures its financing product based on the Murabahah structure, with a cost of 15—20% of the Murabahah margin to fundseekers. It has developed a proprietary credit scoring technology for a range of digital sectors including software-as-a-service, enterprise software, content, gaming, ads, light asset marketplaces and internet-based virtual goods.
“To ensure we are Shariah compliant, we work closely with a Shariah lawyer who drafts our legal contracts in line with AAOIFI standards, and we are currently seeking a Fatwa for our product from the Shariyah Review Bureau,” Dunya previously told IFN, a sister publication of IFN Fintech.
Dunya in a statement noted that the company is preparing to underwrite debt for other financial institutions.
Obtaining a license from the Ministry of Investment Saudi Arabia in July, Capifly confirmed that it has begun work to expand to Malaysia, eyeing the Islamic finance market potential of Southeast Asia.