Alif has secure $20m debt investment from Accial Capital

Central Asian fintech firm Alif successfully raised $20 million in debt financing from Accial Capital, a US-based impact private credit fund manager. The new partnership will contribute to strengthening financial services offered by Alif to Uzbekistan consumers, mainly via its Nasiya installment service, and encourage financial inclusion by supporting the establishment of a viable financial sector.

Company overview

Founded in 2014 by Abdullo Kurbanov, Firdavs Mirzoev, and Zuhursho Rahmatulloev, Alif has grown into one of Central Asia’s leading fintech companies, serving Uzbekistan, Tajikistan, and Pakistan. Its super-app gives customers access to a wide range of services: transfers, payments, public transport fare payments, government services, a marketplace, the Nasiya installment service, and purchases of airline tickets. In 2021, Alif was valued at $100 million and raised Series A, with equity of $8 million and debt of $50 million from its existing shareholder and seed investor, Jefferson Capital Holdings Limited. 

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Funding detail

Accial Capital recently invested $20 million in debt in Alif, which highlights the shared interest in promoting financial inclusion and ethical finance in Uzbekistan.

The joint efforts are expected to improve Alif’s Nasiya service capabilities, strengthen its market position, and contribute to the development of a sustainable and accessible financial sector in the country. With this new investment, Alif has secured around $50 million in total funds raised for Uzbekistan from international investors during 2024.

Since entering the Uzbek market, Alif has attracted more than $150 million in equity and debt investments, which reflects the company’s consistent growth and the trust investors place in its pivotal role in developing financial infrastructure in Central Asia. FF NEWS Strategic Objectives
The capital infusion from Accial Capital is expected to enable

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several strategic initiatives for Alif:

• Expansion of Nasiya Service: Nasiya is a flagship product of Alif, which allows more than 1 million unique users to buy goods and services in installments without any down payment for up to 24 months, both online and offline, at more than 5,000 points of sale. The investment will be channeled into improving the capabilities of the service, thus making essential goods and services more accessible to consumers.
• Alif intends to expand services and reach a wider spectrum of the population that has not traditionally been served through the financial industry. This resonates with its mission of expanding financial inclusion for individuals through affordable financial solutions.
• It is expected to further strengthen the market position of Alif in the Uzbek financial market so that the company can scale up its solutions, which will lead to the growth of a sustainable and accessible financial sector.

Islamic Finance Commitment

All the operations of Alif are conducted based on the principles of Islamic finance and are conducted on ethical financial practices. All the funds collected have been structured on these principles and thus prove that the company adheres to Shariah compliance. This helps build trust with the majority of the population in the regions Alif operates, creating a broader acceptance of the services.

Leadership Perspectives

Nuriddin Lafizov, CEO of Alif in Uzbekistan, was optimistic about the partnership. “Partnering with Accial Capital is a great step toward enhancing financial inclusion for our users. Accial Capital shares our values of social responsibility and ethical finance. We are confident that this partnership will help us scale our solutions and contribute to developing a sustainable and accessible financial sector.

Deborah de Rooij, Chief Investment Officer at Accial Capital, said: “We are delighted to partner with Alif in the pursuit of financial health across Uzbekistan and to provide access to goods essential to enhancing our customers’ standard of living. 

Alif’s track record on responsible lending and its alignment with Accial Capital’s mission of creating widespread financial health and inclusion have been very attractive. We are impressed by the talent and diversity of Alif’s team in Uzbekistan and look forward to supporting the company’s ongoing growth and success.”
WICZ

Effect on Financial Inclusion

The collaboration between Alif and Accial Capital holds great promise to impact financial inclusion within Uzbekistan significantly. The ability of consumers to buy goods and services in instalments offered through Alif’s Nasiya service provides means for individuals to access the required products that improve quality of life. This enhances consumers’ purchasing power, increases economic activity, and supports the expansion of local enterprises.

Future Perspective

With the extra finances, Alif is in good stead to progress further on this path of development and innovation. The company seeks to expand on its services offer, enter newer markets, and make use of technology to become more accessible as well as even friendlier finance solutions. Thus, while Alif continues to strive in the evolution of its financial infrastructure, its commitment to ethical finance and social responsibility continues to motivate it to drive a positive effect in the societies it operates from.

summary

Securing a $20 million investment from Accial Capital is one of the significant milestones Alif has achieved toward its mission to enhance financial inclusion in Uzbekistan. Strategic partnerships and a commitment to ethical finance have positioned Alif to play a pivotal role in shaping the future of the financial sector in Central Asia, with innovative solutions that empower individuals and contribute to overall economic development.