Inaam: Pioneering Impact Investment for the Next Generation
Melbourne-based startup Inaam has recently made waves in the fintech world by successfully closing a $500,000 pre-seed funding round. This significant milestone marks the launch of its innovative platform designed to empower young investors to make responsible investment choices while tracking the tangible impacts of their financial decisions.
Backing from Notable Investors
The funding round was notably supported by Startupbootcamp’s Sustainable Fintech Fund and Singapore-based venture capital firm Hatcher+ VC. Additionally, it garnered interest from Startmate mentors, executives from ASX50-listed companies, and a diverse group of prominent women investors and family offices. This backing not only provides the necessary capital but also validates Inaam’s mission to redefine investment for a socially conscious generation.
A Journey of Resilience
Arjun Agarwal, the founder and CEO of Inaam, expressed his gratitude for the funding, stating, “It’s everything we have needed to launch. And it’s been a journey, oh my god.” For Agarwal, this achievement goes beyond mere financial backing; it represents a personal milestone in a landscape where South Asian fintech founders are few and far between. He noted the challenges of establishing an investment fund, particularly due to stringent regulations and compliance issues, which often serve as barriers to entry in the fintech space.
A Personal Mission
The inspiration behind Inaam is deeply rooted in Agarwal’s personal experiences. His father, a successful entrepreneur in South Africa’s pharmaceutical industry, faced significant financial mismanagement that ultimately led to devastating losses. This experience ignited Agarwal’s passion for financial literacy and responsible investing. “I can’t let any other family go through this ever again,” he reflected, emphasizing his commitment to ensuring that young people are equipped with the knowledge to make informed investment choices.
Innovative Investment Platform
Inaam’s platform offers custom micro-portfolios starting at just $10 a month, making it accessible for young investors. What sets Inaam apart is its focus on embedding investment literacy throughout the user experience. Users can track the real-world effects of their investments, such as the number of trees planted or the amount of renewable energy generated. This transparency is crucial in an era where greenwashing is prevalent, and Agarwal is determined to provide a genuine approach to environmental, social, and governance (ESG) criteria.
Redefining ESG Standards
Agarwal is adamant that Inaam is not merely checking boxes when it comes to ESG compliance. He believes that true impact investing goes beyond superficial measures. “Impact sits 20 steps ahead of that, which is really looking at systems change,” he explained. For instance, while companies like Tesla may seem impactful, Agarwal’s rigorous criteria exclude them due to concerns about their supply chain practices. Inaam employs a three-pronged framework that assesses financial soundness, impact contribution, and leadership integrity, including psychosocial screening of leadership teams.
A User-Friendly Experience
Since its formal registration in 2021, Inaam has been in development, evolving from an idea pitched during Agarwal’s Master’s program at the Wade Institute. The app is designed to be user-friendly, resembling platforms like Duolingo or Notion rather than traditional financial services tools. It incorporates gamification and embedded explainers to enhance financial literacy, targeting users aged 18 to 30 who are socially aware and earning income. Agarwal mentioned, “If you don’t know something, you can tap and learn,” ensuring that users are continually educated about their investments.
Building a Strong Team
The Inaam team has grown to 13 members, encompassing various roles in engineering, marketing, and investment analysis. Agarwal is also in the process of bringing on a potential co-founder to help mitigate risks as the company prepares for its next funding round. This collaborative approach aims to strengthen the business while ensuring Agarwal maintains a balanced workload.
The Future of Responsible Investing
With its innovative platform and commitment to transparency, Inaam is poised to reshape the landscape of impact investing. By focusing on education and real-world effects, the startup is not just offering a financial service; it’s fostering a movement towards responsible investing that aligns with the values of a new generation.