Sarwa, the Dubai-based investment and personal finance platform with more than 40,000 registered users, has closed a USD15 million Series B financing round.
The round was led by Mubadala Investment Company with 500 Startups, Kuwait Projects Company, Shorooq Partners, Middle East Venture Partners (MEVP), DIFC, Hambro Perks Oryx Fund, HALA Ventures and Vision Ventures also participating. Representatives of Mubadala and 500 Startups are joining Sarwa’s Board of Directors.
A partner of the Hub71 community in Abu Dhabi, the platform continues to scale its services across the region. Since launching in February 2018, it has revolutionised how young professionals grow their wealth by bringing smart, simple and affordable digital investing to the region.
The new capital will be used to further expand its market position and grow its team, as well as launch several new products to build on its stated ambitions to address all aspects of personal finance.
“Everyone on the team is excited to begin this new chapter. Thousands of clients already use Sarwa to grow their money and build a better future, and this investment will fuel our growth so that we can reach millions more,” said Mark Chahwan, Co-Founder and CEO of Sarwa.
“We want to ensure that everyone has access to simple, smart, and affordable financial products and services. Sarwa is built on the combination of innovative tech and a customer-centric brand. Having the support of some of the world’s leading investors proves that Sarwa is well-positioned to lead this transformation in the region. We will continue helping our clients build for a better financial future.”
Through its mobile app, Sarwa aims to deliver more innovative personal finance products, such as Sarwa Trade and Sarwa Crypto. Sarwa Trade, which is currently in the pre-launch stage, is a commission-free stock trading platform that allows investors to trade with as little as USD1 on major exchanges across the world. Sarwa Crypto portfolios provide the same global diversification as the Sarwa Invest portfolio, with an added 5% exposure to Grayscale Bitcoin Trust GBTC, the world’s first and largest publicly quoted Bitcoin investment vehicle.
In June 2021, Sarwa Invest also lowered its minimum investment amount to just $5 from an initial $500 to reflect its commitment to democratise investing.
Ibrahim Ajami, Head of Ventures and Growth at Mubadala Investment Company, said: “Sarwa is revolutionising the financial services landscape in the Middle East by offering a range of investment solutions to a large market that has had little access to such services in the past. In just three years, the company has nearly doubled its client funds.
“When Mubadala looks at early-stage investment opportunities, the quality of the founders is of paramount importance, and we strongly believe that Sarwa’s management team has the vision and passion to lead the company into its next phase of growth.”
With a turbulent global financial landscape in 2020, Sarwa experienced an influx of new clients, leading deposits to nearly double. By investing on global markets through Sarwa, investors realised average year-on-year returns of more than 33% for a balanced portfolio, which averaged out to 11% over a five-year period.
Founded in 2017, Sarwa was the first fintech company to be licensed as a digital financial advisor for young professionals in the MENA region and was awarded the first-ever Innovation Testing License by the Dubai Financial Services Authority. Its flagship product, Sarwa Invest, was designed to provide automated investing in globally diversified portfolios. To date, Sarwa has raised around $25 million from regional and international investors, as well as government funds.
