Heaptalk, Jakarta — An Indonesia-based sharia-compliant SME lending platform, ALAMI Group, has accomplished its pre-series B funding round for undisclosed amounts. By this new injection, ALAMI plans to create world-class sharia-compliant financial technology. By investing in the Hijra Bank, the platform expect to serve over 59 million SMEs and millions of Muslim society with a comprehensive digital application.
This round was led by East Ventures, and also supported by its existing investors, spanning AC Ventures, Quona Capital, and FEBE Ventures. In addition, a US-based venture firm, Capria Ventures joins the round as as new backers. This participation also marks its first direct investment in the Asia Pacific.
This new injection further strengthens ALAMI Group’s power to provide Muslim consumers in Indonesia and SMEs with better access to financial products that adhere to the Sharia principle among Indonesian SMEs, most of which are still struggling to discover a product that fits their business intensively by the Islamic regulation.
In response to the fund, ALAMI Group’s Founder and CEO, Dima Djani, stated, “This pre-series B round is the investors’ robust validation concerning the positive impact contributed by ALAMI to Indonesia’s market. We perceive the tremendous long-term potential that access to banking and Sharia-compliant financing from our Hijra Bank can unlock for Indonesia’s 230 million Muslim and SMEs. We will commit more energy and resources in the future as we see a huge and under-penetrated market unfolding before us,”
As Indonesian SMEs recover from the pandemic, the demand across supply deficit for finance needed by SMEs still attained US$108 billion to resolve this challenge. Peer-to-peer lending (P2L) platforms have also emerged as a rapid revolutionary financial lending solution.
Since its establishment in 2019, ALAMI has disbursed more than USD200 million with a Non-Performing Finance (NPF) of 0% as of last month. This sharia fintech app currently has over 111,000 p2p investors, almost focused on the exponential enhancement of SMEs in Indonesia. The company also acquired the Hijra Bank, the only sharia rural bank in Jakarta, in 2021. Early this year, Hijra Bank obtained a Digital Mobile Banking License issued by Indonesia Financial Authority (OJK).
Amidst the uncertain macroeconomic environment, the existing and new investors in the round show an incredible level of trust in the company providing solutions to the underserved millions of Muslims for their businesses to be sustainable in Indonesia.
Realizing the significant growth around the banking sector, with more than 230 million Muslims in Indonesia, the Managing Partner of East Ventures, Roderick Purwana, delivered his enthusiasm for doubling down the firm investment and continuing to be part of ALAMI’s journey in transforming the sharia finance industry in the archipelago.
“As proven through the company’s positive growth and KPIs surpassed, we genuinely believe that the vital expertise and integrity of Dima and the team will continue to empower the banking industry in Indonesia, exclusively moving the financial inclusion towards sustainability,” Roderick said.
