UK-based Islamic P2P financier Qardus has hit its GBP300,002 (US$381,228) equity fundraising target ahead of the campaign closing.
Having launched its campaign on the 25th May on crowdfunding platform Seedrs, Qardus has raised GBP319,671 (US$406,222) as at the 5th July 2023, with 14 days to go until it ends its campaign. A total of 162 investors have participated in the equity round so far. At a valuation of GBP8 million (US$10.17 million), Qardus is offering 3.84% in stake at GBP7.51 (US$9.54) per share.
Incorporated in 2019 and authorized by the Financial Conduct Authority, Qardus has disbursed GBP2.3 million (US$2.92 million) in SME financing in the 12 months from May 2022. The fundraising campaign comes as the Islamic fintech company is working on eventually becoming an Islamic SME challenger bank. Its product portfolio includes unsecured and secured business finance, working capital finance, healthcare finance and manufacturing finance.
Currently, Qardus charges SMEs an arrangement fee of 5% of funds raised through the platform and charges investors an annual servicing fee of 3% of funds invested. The platform, however, has begun raising its fees to 6% and 3.5%, respectively.
“This means our total fees currently amount to 14% of the deal value over the 36 months tenor of a facility,” it explained.
There are plans to implement financing-as-a-service fees for use of its proprietary technology by Islamic financial institutions, with a view of charging banking fees as it moves toward its neobank ambition.
According to information provided, Qardus has seen average revenue per deal grow by three times over the last year and it has built a track record with over GBP600,000 (US$762,450) in repayments to date.
Qardus is one of at least 43 Islamic fintech start-ups operating in the UK, according to the IFN Islamic Fintech Landscape as at the 5th July 2023.