Adaverse, a Cardano ecosystem accelerator and seed fund with a focus on scaling Web3 solutions, announces its first strategic investment in Saudi Arabia’s Takadao, marking the companies’ commitment to the pursuit of Vision 2030. Takadao, a revolutionary force in the financial industry, introduces community-owned financial services, challenging traditional financial paradigms with its innovative approach.

Adaverse: Pioneering the Web3 Revolution

Adaverse is a leading early-stage investor and builder in the Web3 sphere, boasting 60 investments across 13 nations from around the world. An initiative by EMURGO, the renowned global blockchain technology firm and a founding member of the Cardano blockchain platform, Adaverse is on a mission to build a global community of entrepreneurs solving the world’s challenges with blockchain technology.

Excited about Vision 2030 and Saudi Arabia’s openness to innovation and economic diversification, Adaverse has now officially expanded its operations to Riyadh, making it the very first venture capital fund in the Kingdom to specialise in Web3 and blockchain early-stage investing. In 2024, the company plans on investing $10 million in local Web3 startups.

In addition to providing capital investment, Adaverse is uniquely proactive in supporting the growth of its portfolio companies. This involves assistance in developing product strategies that leverage Web3 technology, helping startups establish and grow their communities in other markets such as Southeast Asia and Africa, and connecting them with leading Web3 investors from Asia, the US, and other regions for future fundraising opportunities.

Vincent Li, Adaverse founding partner, is optimistic about the prospects for both Adaverse and Takadao, stating, “Adaverse’s entry into Saudi Arabia with Takadao is more than an investment; it’s our commitment to elevate solutions that solve everyday challenges and empower communities. Takadao, with its groundbreaking and community-centred approach, adeptly meets essential everyday needs, and we’re enthusiastic about backing this fusion of tangible innovation and market opportunity, a project at the heart of highly committed and visionary co-founders Morrad and Sharene. This venture marks a significant milestone for our commitment to development in the Middle East, and we eagerly anticipate Takadao’s growth and continual innovation.”

Takadao: Redefining Financial Services with Ethical Solutions

Founded in May 2022, Takadao has been a beacon of innovation in the decentralised finance space, even amid challenging market conditions. Its premier product, Takaturn, is a novel savings and yield generation platform enabling collective savings and liquidity access. The flagship product, Takasure, is a cooperative life insurance DAO (Decentralized Autonomous Organization), a pioneering model where members pool funds for mutual insurance, redistributing profits among members. Takadao distinguishes itself from traditional financial services by leveraging blockchain technology to enhance transparency and reduce costs, offering more secure and efficient community-driven, halal insurance and financial solutions to a diverse global audience, including both Muslim and non-Muslim communities, attracting those interested in the ethical aspect of the platform.

Co-founders Morrad Irsane and Sharene Lee, inspired by personal experiences and a commitment to ethical financing, have crafted a platform that caters to a diverse global audience, providing secure and community-driven financial solutions.

Reflecting on this collaboration, Morrad Irsane, Co-Founder of Takadao, said, “Partnering with Adaverse propels us forward in our journey. Their expertise in the web3 space, coupled with their deep-rooted connections in key markets, accelerates our knowledge and community-building efforts.”

The Growth of Shariah-Compliant Financial Services

Shariah-compliant financial services are rapidly emerging as a significant force in the global financial landscape, far surpassing the confines of a niche market. Currently, these services, encompassing banking, capital markets, money markets, and Takaful (Islamic insurance), are estimated to be valued at around US$2 trillion. 

This sector is witnessing accelerated growth, especially in predominantly Muslim countries where Islamic banking assets are growing at a faster pace than traditional banking assets. This trend is largely driven by strong economic growth and strategic development plans, especially in crucial markets like Saudi Arabia, where the corporate sector is playing a pivotal role in increasing the volume of Halal financial transactions.

Takadao’s Strategic Position in the Islamic Finance Market

This investment by Adaverse is not just a financial endeavour but a strategic alliance aimed at scaling Web3 solutions and bolstering economic diversification in Saudi Arabia. The partnership symbolizes a harmonious blend of Adaverse’s deep-rooted expertise and expansive market connections with Takadao’s groundbreaking initiatives, primed to catalyze growth and expansion in pivotal markets.

Takadao’s entry into the Islamic finance market is both timely and strategic, filling a crucial gap. Despite Shariah-compliant insurance serving the fast-growing Muslim demographic, which accounts for 24% of the global population, it currently represents less than 0.5% of the $5 trillion global insurance industry. Overcoming scalability challenges posed by traditional financial infrastructures, With the Islamic finance sector anticipated to grow by 10% annually and reach around $5.1 trillion by 2028, Takadao is ideally positioned to lead in this expanding market, especially in key regions like Saudi Arabia, showcasing its commitment to innovation, ethical practices, and community focus.

So far, Takadao has built a community of over 17,000 members around their savings product Takaturn (launched in October 2024). With a patent pending on their actuarial and risk management algorithm, Takadao is set to revolutionize Shariah-compliant financial services with the launch of Takasure in June 2024. At this juncture, Adaverse joins Takadao, bringing expertise in the web3 space to support Takadao’s next growth phase towards the successful launch of Takasure and also amplify Takadao’s impact in key markets. 

Conclusion

Adaverse’s investment in Takadao is a pivotal step towards supporting innovative and ethical financial solutions in alignment with Saudi Arabia’s Vision 2030. This partnership not only signifies a financial investment but also reflects a shared vision of driving innovation and change in the financial sector, leveraging the strengths and expertise of both entities.