Empathy Sparks Innovation:
Having previously founded Melltoo, a UAE-based startup, Lee and Irsane conceptualized Takadao after a personal tragedy. The sudden demise of a friend prompted them to seek proactive solutions to support families left behind. Irsane, the CEO of Takadao, emphasizes the startup’s mission to create lasting impacts beyond individual lifetimes.
Flagship Products:
Takaturn (Jamaiyah):
Takadao’s flagship products include Takaturn, also known as Jamaiyah in the Middle East, based on the ROSCA concept. This innovative approach facilitates community savings and credit associations, fostering financial inclusivity.
Takasure:
Scheduled for launch in June 2024, Takasure employs DAO technology and blockchain for a cooperative life insurance model rooted in Takaful principles. Notably, insured individuals become owners, eliminating conflicts of interest seen in traditional insurance companies.
Decentralized Ownership:
Lee, the Co-Founder, highlights the misalignment in traditional insurance, where profits are maximized by minimizing claims. Takadao’s solution involves aligning the interests of shareholders and the insured by making them the same entity. Through blockchain, members worldwide can actively participate in decision-making, contributing to a transparent and fair system.
Risk and Returns:
Contributors to Takasure’s fund can make claims and receive returns based on health risk assessments. This cooperative approach reflects the essence of insurance, spreading costs across a community to provide substantial benefits, promoting financial resilience.
Blockchain Security:
Addressing concerns surrounding blockchain security, Irsane asserts its superiority, stating it is the most secure technology available. Despite publicized incidents, he emphasizes that the transparency of blockchain ensures prompt awareness of any breaches, fostering trust.
Impressive Growth Amidst Concerns:
Despite reservations about blockchain, Takadao boasts a community exceeding 10,000 members, growing at a remarkable 5% weekly. This steadfast growth demonstrates the trust and confidence users place in Takadao’s innovative approach to financial services.
Diversification with Takaturn:
To expand its user base, Takadao recently introduced Takaturn, known as Jamaiyah in Arabic. This product serves as a customer acquisition tool, allowing users to experience a tangible offering before transitioning to the insurance product.
Global Islamic Finance Growth:
As global interest in Islamic finance grows, Takadao addresses a market need. S&P Global Ratings predict a 10% growth in the Islamic finance industry from 2023 to 2024, following a similar trend observed in 2022.
Strategic Funding and Tim Draper’s Involvement:
Takadao recently secured $1.6 million in a pre-Seed round, led by renowned investor Tim Draper from Silicon Valley. This marks Tim Draper’s inaugural investment in a Saudi-based startup, signifying a pivotal moment for Takadao. Irsane expresses gratitude for having visionary investors, emphasizing the value of support and understanding in the Web3 space.
Navigating Economic Challenges:
In the face of global economic uncertainties, including tightening monetary policies, inflation, geopolitical tensions, and lingering pandemic effects, Takadao anticipates increased interest in alternative financial solutions. Lee predicts a surge in blockchain adoption, both among the general public and institutions, challenging the current inflationary system.
Conclusion:
Takadao’s innovative use of blockchain technology not only addresses the shortcomings of traditional insurance but also aligns with the evolving landscape of global finance. With a focus on community empowerment and financial inclusivity, Takadao pioneers a path towards a more equitable and secure financial future.