Design‑software darling Figma has finally filed to list on the NYSE under the ticker “FIG.” With the deal expected to raise roughly US $1.0 billion at a valuation that could touch US $16.4 billion, the offering is one of 2025’s marquee tech events.
Muslim Xchange’s Shariah desk reviewed Figma’s S‑1/A (based on 21 March 2025 earnings). It is unfortunately not compliant due to high interest income. Below is a concise breakdown of the numbers, how they map to AAOIFI and other screens, and what Muslim investors should know before the shares hit the market.
1 | Figma in a Nutshell
| Metric (FY ended 31 Mar 2025) | Figure |
|---|---|
| Revenue (subscription + services) | US $228.2 million |
| YoY revenue growth | 46 % (Q1 2025 vs. Q1 2024) (Reuters) |
| Net income (Q1 2025) | Tripled YoY (Reuters) |
| Cash & equivalents | US $310 million |
| Financial debt | Zero |
Figma’s browser‑first design tools power product teams at ServiceNow, Workday, SAP and thousands of start‑ups. Network effects (live collaboration) and a bottoms‑up sales motion have delivered enviable net‑dollar‑retention north of 130 %.
2 | How We Screened the IPO
Muslim Xchange applies 5 major Shariah standards, which examine:
- Business Activity – core revenue must come from halal lines of business.
- Financial Ratios – varies based on the rulebook
- Non‑Permissible Income – interest or other haram income must not exceed 5 % of total revenue.
3 | Snapshot of Figma vs. Shariah Thresholds
| Screen | Threshold | Figma’s Figure | Verdict |
|---|---|---|---|
| Business | Software‑as‑a‑Service allowed | Design SaaS | ✅ Pass |
| Debt ratio | Varies | 0 % | ✅ Pass |
| Interest / Revenue | < 5 % | 6.3 % | ❌ Fail |
Key driver of failure: Figma parked surplus cash in interest‑bearing accounts and reported US $15.528 million in interest income—6.3 % of gross revenue, breaching the 5 % ceiling.
4 | What This Means for Muslim Investors
- Initial stance: Under most Shariah standards including AAOIFI, Figma’s common stock is Not Shariah Compliant at listing.
- Path to compliance:
- Figma could lower its riba‑derived income (e.g., move excess cash to non‑interest Islamic structures).
- Shariah‑focused funds may revisit the name if quarterly filings show the ratio dropping below 5 %.
- Purification option: Individual investors who still acquire shares (e.g., via index trackers) should purify the haram portion of dividends—6.3 % until the ratio changes.
5 | IPO Highlights Beyond Compliance
- Price range: US $25–28 per share targeting a US $16.4 billion fully‑diluted valuation (Reuters).
- Proceeds: Up to US $1.03 billion—fuel for product R&D and potential AI‑centric acquisitions.
- Bitcoin allocation: S‑1 discloses US $70 million already invested in a spot‑BTC ETF, with another US $30 million planned (Reuters).
- Tailwinds: Cloud collaboration trend; design‑system standardisation across enterprises.
- Risks: Crowded AI‑design competition, talent immigration friction, and potential macro slowdowns in non‑US markets.
6 | Bottom Line
Figma is a category‑defining SaaS story with robust growth and zero leverage—yet it fails the AAOIFI and other standards non‑permissible‑income screen (6.3 % vs. 5 %). Unless management adjusts its treasury strategy, Muslim investors committed to strict Shariah mandates should stay on the sidelines or track the ratio for future quarters.
Screened by an AAOIFI‑Certified Shariah Advisor & Auditor at Muslim Xchange Inc. Trusted by leading Islamic funds worldwide.
Disclaimer: This post is for informational purposes only and does not constitute investment advice. Always conduct your own due diligence and consult a qualified advisor before investing.
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