Islami Bank eyes US investment in mCash

Infographic: TBS

Islami Bank Bangladesh PLC has approved a proposal to bring little-known US-based B100 Holdings LLC as a strategic investor in its mobile financial services subsidiary mCash Ltd, aiming to strengthen the platform's capital base and expand its digital financial services.

The decision was taken at a board meeting of Islami Bank Bangladesh PLC held at its head office in Dhaka on Sunday, according to a price-sensitive disclosure issued the same day.

Under the proposal, the New York-based B100 Holdings will join as a strategic partner in mCash Ltd, which operates the bank's mobile financial services platform. The investment will be subject to compliance with legal and regulatory requirements and approvals from relevant authorities.

Following the announcement, Islami Bank's share price rose 9.89% on the Dhaka Stock Exchange yesterday, reaching Tk41.10. The bank's market capitalisation increased by around Tk690 crore to Tk6,617 crore.

According to the disclosure, the paid-up capital of mCash will be increased in phases to Tk500 crore. Islami Bank will retain at least 51% ownership of the subsidiary, while B100 Holdings may acquire up to 48.99% of shares through subscription, subject to approval from the mCash board and regulators.

Under rules set by Bangladesh Bank, commercial banks must hold a minimum 51% stake in mobile financial service providers. Islami Bank said it would comply with the requirement while allowing the foreign investor to hold a maximum of 48.99% of shares.

Based on the proposed capital structure, B100 Holdings could invest nearly Tk245 crore in the company.

Omar Faruk Khan, managing director of Islami Bank, said the proposal originated from the US firm.

"They approached us with the investment proposal and our board has accepted it in principle because they committed to bring funds as needed, potentially from the Middle East," Omar told The Business Standard.

He said the bank would now examine the firm's financial strength and capability before finalising any agreement.

"At this stage, we are still in the initial phase. After reviewing their strength and ability, we will make the final decision regarding the partnership," he added.

Omar also acknowledged that mCash has struggled to secure a strong position in the market since its launch more than a decade ago.

"Despite operating for over ten years, mCash remains in a relatively weak position compared to other mobile financial service providers. Our goal is to develop mCash into a competitive platform similar to bKash, the country's leading MFS provider," he said.

To achieve that goal, the bank plans to increase investment in the platform and bring in a strategic partner capable of supporting long-term expansion.

Limited information about US investor

Public information about B100 Holdings, however, remains limited. According to the New York company registry, the firm was established on 22 December 2025 in New York. Arman Chowdhury is listed as its co-founder and chairperson.

Several stock market analysts contacted by The Business Standard said they were unfamiliar with both the individual and the newly formed investment firm.

Information available online indicates that Arman has been serving as national executive director of the Muslim Ummah of North America since 2021. He is also associated with New York's Baitul Mamur Masjid and Community Center as its president.

According to the company's website, B100 Holdings aims to invest in Bangladesh's economic infrastructure by supporting 100 large business enterprises through institutional capital, governance frameworks, and operational expertise. 

The firm describes itself as a principal investor and long-term sponsor that deploys capital on a deal-by-deal basis alongside select institutional partners.

It says this model allows it to focus on long-term value creation without the constraints of traditional fund cycles or forced exits.

Islami Bank launched the mCash service in December 2012 and operated the platform directly through its own infrastructure for more than a decade. In January this year, the bank spun off the service into a separate subsidiary to strengthen governance and attract external investment.

The newly formed mCash Ltd has an authorised capital of Tk1,000 crore and an initial paid-up capital of Tk50 crore.