algbra Raises £3.75M to Launch the UK's First Sharia-Compliant and ESG-Aligned Digital Bank
April 15, 2024
algbra, a London-based digital finance platform combining Sharia compliance with ESG principles, has raised £3.75 million in seed funding to launch its services in the UK. The round is backed by SFC Capital, British Business Investments, and New World Group. The capital will be used to build out algbra's product suite — including current accounts, foreign exchange, remittances, and rewards — and to grow the team as the company prepares to operate its first bank accounts.
algbra was founded in 2020 by Zeiad Idris, a finance and investment professional, and Fizel Nejabat, a lawyer and entrepreneur. The name is a deliberate play on algebra — the mathematical discipline derived from the Arabic phrase "al-jabr," meaning "the reunion of broken parts." The founders saw the parallel as fitting: just as algebra seeks to resolve variables and restore balance, algbra aims to address the broken relationship between the financial services industry and minority communities it has historically underserved or excluded.
The platform is built around a values-based financial model that combines Sharia-compliant principles — including the prohibition of interest (riba), speculative investment, and industries considered harmful — with broader ESG commitments including carbon tracking, sustainable investment options, and charitable giving. algbra's app includes a carbon footprint calculator that helps users understand the environmental impact of their transactions and offset it, as well as an integrated donations feature connected to over 100 UK charities. The company was later awarded full FCA authorisation as an electronic money institution and became the first FCA-authorised payments firm to achieve B Corp certification.
The market opportunity is substantial. There are more than three million Muslims in the UK, with a median age of just 25 — a demographic that is a natural fit for a mobile-first financial product. Globally, the Muslim population of nearly two billion includes an estimated 800 million unbanked individuals, four of the ten fastest-growing economies worldwide are Muslim-majority, and the Islamic finance industry is expanding rapidly as demand for values-aligned products grows across faith communities and beyond. algbra's founders believe that building a genuinely inclusive platform for Muslim consumers creates a model that can scale globally to serve other ethically-minded audiences who feel that mainstream financial services do not reflect their values.
The seed funding will support the continued development of algbra's technology stack, the recruitment of a team committed to its social mission, and the launch of its initial banking products. The company has committed to donating 10 percent of its profits through its charitable foundation, Algbra X, focused on education, sustainability, culture, and arts for underrepresented communities.
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