Wednesday, May 1, 2024
Editor's PickLYNK to build Islamic finance product suite with new investment

LYNK to build Islamic finance product suite with new investment

Saudi Islamic fintech start-up LYNK has raised an undisclosed amount of investment which it will use to develop new products and expand its geographical footprint.

Family business Al Fozan Holding and investment firm Ramla Holding Group participated in the funding round, which was facilitated by Investors Mine Angel Network.

Founded in April this year by former Islamic banker Thabit Al Subaie, LYNK is a B2B intermediary of Murabahah-based financial transactions. The platform was launched with the help of BIM Ventures’s Saudi Venture Studio.

The start-up, which acts as a link between financial institutions, commodity markets and beneficiaries, said it has automated over SAR100 million (US$26.64 million) of such deals for financial institutions since its inception. According to the platform, it is able to execute up to 15,000 transactions daily with a value of at least SAR5 billion (US$1.33 billion), with each completed in under 60 seconds.

“LYNK aims to broaden its reach within the financial sector, both locally and internationally,” the start-up said in a statement without disclosing the funding amount.

The company plans to introduce additional fintech products that cater to financial institutions.

“LYNK is dedicated to expanding its scope of work and strengthening its position among prominent financial institutions by establishing strategic partnerships aimed at meeting the aspirations of customers and fulfilling market needs.”

The start-ups investment injection follows a high-profile funding round: Tabby earlier this month secured US$200 million in Series D funding, bringing its valuation to US$1.5 billion, making the Islamic buy-now-pay-later start-up the Islamic fintech’s industry’s first unicorn.

There are at least 40 fintech companies in Saudi Arabia offering Shariah compliant products and services, according to the IFN Islamic Fintech Landscape as at the 13th November 2023.

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