UK’s Ayan Capital secures £25m to democratize halal financing

London-based Islamic car financing provider Ayan Capital has secured up to £25 million in Shariah-compliant financing facility to strengthen its foothold in the sector. 

Ayan Capital aims to deploy the latest funding – secured from private credit firm Partners for Growth – to accelerate growth and scale tech-led underwriting capabilities, the company said in a statement on Wednesday. The funding is based on Ijara wa Iqtina (lease and ownership) principles. 

The company is looking to expand access to halal finance across the UK, targeting £25 million in financing in 2025 and £100 million next year. The company aims to secure a UK banking license in the long-term. 

The latest round of funding follows its recent £3.4 million Pre-Series A round.

Ayan Capital provides halal business car financing to private hire and business drivers, keen to purchase low-carbon emission cars via a tech-led commission-free model. The company recently launched a zero interest, 12-month financing facility, covering home repairs, renovations, car repairs and furniture purchases, it said in a statement. 

Abdullo Kurbanov, CEO of Ayan Capital said that choosing a halal option should not mean paying more. 

“Our mission is to make halal financing more accessible in every way - cost, technology, and customer experience. While we are still at the beginning of our journey, we are wholeheartedly committed to building a financial system that is open to all – one that is not only halal but also more competitive, convenient, and innovative than conventional alternatives.”

The UK is an outlier in the global Islamic fintech space, ranking among top markets conducive to the sector. Islamic banking in the country is projected to grow, with related assets expected to grow to $15 billion in the medium term, according to Fitch Ratings.