Notes on the Interview with Jite Wahed, Founder of Wahed

Introduction

• Jite Wahed, founder of Wahed, an investment platform for the Muslim community.
• Founded Wahed in 2017 after working on Wall Street.
• Provides Sharia-compliant investment solutions, avoiding interest-based investments.

Wahed’s Growth and Achievements

• Wahed has raised $75-$82 million, with a Series B round of $50 million in 2022, valuing the company at $300 million.
• Operates in four markets with 11 offices globally.
• Received a digital investment management license in Malaysia from the Securities Commission in 2019.

Inspiration Behind Wahed

• Idea sparked during a taxi ride in New York in 2015.
• A conversation with a taxi driver from Bangladesh, discussing his savings and investment options as a practicing Muslim.
• The driver's experience highlighted the need for a platform catering to the Muslim community’s investment needs.

Transition from Wall Street to Entrepreneurship

• Jite left his lucrative Wall Street career to pursue his entrepreneurial vision.
• Factors influencing his decision included personal fulfillment, family, faith, and the desire for intellectual challenges.

Solo Foundership

• Jite is a solo founder, which is uncommon but allowed him to maintain a clear vision and decision-making control.
• Emphasizes that many entrepreneurs tend to be autocratic, making it hard to find co-founders.

Investor Relations

• Raised capital by focusing on product quality and organic growth.
• Investors often act as partners and share responsibilities in the company's success.

CEO Transition

• Jite recently handed over the CEO role to Mosen Sidiki.
• Mosen is characterized as an operator, while Jite identifies as a builder, focusing on new products and market entry.

Challenges in the Industry

• Early skepticism regarding Wahed’s business model.
• Resistance from established Islamic Finance professionals who doubted the business viability.

Product Development Strategy

• Focused on minimizing interest exposure in various aspects of life for practicing Muslims.
• Two key factors: Solving real problems and ensuring sound unit economics.

Profitability and Growth

• Wahed is profitable in all operational countries.
• Successful in breaking even in new markets quickly, with a focus on efficient operations.

Market Strategy

• Targeting markets with significant Muslim populations, regardless of their wealth per capita.
• Balancing the responsibility of providing financial services to the Muslim community with business profitability.

Funding and Future Plans

• Discussed the possibility of an IPO to provide liquidity to investors and ensure community ownership of Wahed.
• Current funding strategy is focused on strategic advantages rather than immediate cash needs.

Conclusion

• Jite emphasizes the importance of building a company that is aligned with values and community needs.
• Plans for further growth and expansion into new markets while maintaining a focus on Sharia compliance.