KSA-Based Fintech Takadao Raises US$1.5 Million And Launches Prepaid Crypto Credit Card

KSA-based fintech Takadao, a Web3 platform for bankless financial alternatives, has raised a US$1.5 million seed round that brings the total amount of funds the startup has raised to $3.1 million.

The round included participation from Hasan VC, a Malaysia-based venture capital firm focusing on early-stage Islamic and ethical startups led by Islamic fintech pioneer Umar Munshi; Syla Invest, a France-based blockchain investment company led by Suat Garcu; Wahed Ventures, a UK-based Islamic fintech investor; Ice Blue Fund, a Japan-based crypto-focused investment fund; Istari Ventures, a US-based Web3 and blockchain investor; and Adverse, a Saudi Arabia-based venture fund; in addition to follow-on funding from Silicon Valley’s Draper Associates. 

Founded by husband-and-wife team Morrad Irsane and Sharene Lee in Singapore in 2022, Takadao's protocpl provides decentralized, Sharia-compliant financial alternatives through The LifeDAO, a community-owned nobank. Through the LifeDAO, members gain access to decentralized finance wallets, a life protection fund, non-custodial investment pools, as well as a members’ hub for networking, Web3 education, and financial literacy. Funds deposited into the protocols are both owned and controlled by users, and surplus from operations is redistributed among its members.  

Alongside the fresh funding, Takadao has launched The LifeCard, a prepaid credit card by global payments leader Visa. Operated under The LifeDAO, the card, which lets users spend stablecoins like cash, extends Takadao's push to give people direct control over their money through non-custodial tools and community governance. Lee, co-founder and COO of Takadao, told Inc. Arabia that The LifeCard adds a new element to Takadao's ecosystem, all while advancing the company’s mission to help users adopt a cooperative finance model. 

“The LifeCard is a part of the broader The LifeDAO (TLD) ecosystem, and is connected to the TLD wallet and a non-custodial savings vault," Lee explained. "The savings vault enables users to deposit stablecoins, earn a shariah-compliant yield (4-7 percent annual percentage yield) on their deposits, and spend their crypto as cash anywhere Visa is accepted. Most importantly, unlike money imprisoned in banks which cannot be moved without bank approval, deposits made into TLD vaults are self-custodial, users alone control these funds and can move them without need for approval from The LifeDAO or any middleman. This is ideal for users who want to enjoy high-quality financial services without having to deal with banks; this is ideal for users who want to be their own bank.” 

The LifeCard, Lee explained, is the primary off-ramp to The LifeDAO ecosystem, letting members spend the crypto they earn or save within the network while building habits through round-ups for automatic saving and investing, redistribution of card fee profits to members, and zero percent interest microloans based on historical top-ups. With the exception of a handful of countries, the LifeCard is available globally. And by allowing users to own the process, Lee told us, Takadao’s The LifeCard is setting itself apart from exchange-issued cards for users.

“Many crypto cards in the market, issued by centralized exchanges like Binance or crypto.com, suffer from the same custody issues as bank-issued debit cards, in that users cede control of their money over to the card issuer,” Lee noted. “Another differentiator is that The LifeCard is a community-owned product, and all revenue generated from fees are accrued to The LifeDAO community fund from which surplus is redistributed to members. This is in line with the mission of The LifeDAO to be a community-owned nobank.” 

“The LifeDAO ecosystem is unique in several ways," Lee noted. "Firstly, the protocol enables nobank financial services which are non-custodial and global. This value proposition directly speaks to people who are looking for alternatives to the traditional banking system, a system that is increasingly restrictive and has lost consumer trust. Secondly, the emphasis on community ownership and governance is a strong call to action that has contributed to the early growth of the community. The LifeDAO community is passionate and sees The LifeDAO not as a product, but as a movement away from banks and interest-based systems. Finally, Takadao has built up a strong brand and consumer trust on the backs of openness and transparency, something very unique in the financial space where opaqueness is the norm.” 

Lee also highlighted that having international backers with such strong reach and track records brings reach and credibility to her enterprise as it aims to scale across borders. “Because we are a global movement, we need many voices around the world to believe in us and support us," she said. "These investors do that, and there is nothing more valuable than consumer trust in our space.” And it is in building for the average person that Takadao aims to gain that consumer trust and build its community-based financial model. Lee also pointed out that Takadao's mission is designed to counter distrust in traditional financial institutions. 

“The financial class (1-3 percent of the world's population) keeps getting richer and the average man on the street feels poorer even as his bank account balance increases nominally,” Lee explained.  “People want something different and want a system that is built to benefit them and not the financial class. At the moment, this is very aspirational, and nobanks like us have a long way to go before we become true competitors to the established system. However, this is exactly how movements begin and we are leaders in the movement to create people-centric financial systems that are fair, transparent and governed by those who use them. We are but a consequence of today's financial system, we didn't invent the desire to be bankless, even though we fully understand it ourselves.” 

Given that Lee is a forerunner in community finance models, her advice for other fintech founders is to focus on addressing real needs rather than just tech for the sake of tech. “Very often, founders in Web3 build tech for the sake of tech, to solve problems that don't exist," she said. "There's also a lot of hype and trend-seeking in Web3, which makes it difficult to see what is truly useful for people. Instead, go back to first principles, and build a superior product that makes people's lives better. For Islamic fintech, there is a temptation to cite Sharia-compliance as a value proposition. If your only value proposition is Sharia-compliance, then you are headed for failure. Build a better product first and ensure it's Sharia-compliant. If you can't do both, go back to the drawing board.” 

Pictured in the lead image are Takadao co-founders  Sharene Lee and Morrad Irsane. Image courtesy Takadao.