ALAMI Group, an Indonesia-based Shariah-compliant small and medium-sized enterprise (SME) lending platform, announced Monday that it has successfully closed pre-series B round led by East Ventures (Growth fund) alongside returning investors namely AC Ventures, Quona Capital and FEBE Ventures.

US-based venture capital firm Capria Ventures also joined the round, marking its first direct investment in Asia Pacific, ALAMI said in a statement. The amount of the funding was not disclosed.

With this investment, ALAMI plans to continue creating world class Sharia-compliant financial technology.

It also has invested in Hijra Bank, with the hope to serve more than 59 million SMEs and hundred millions of Muslims with more committed digital apps to fulfill their banking needs.

According to the statement, the announced investment further strengthens ALAMI Group’s effort to provide Muslim Indonesian consumers and SMEs with better access to financial products that adhere to Sharia principle among the Indonesian SMEs, which most of them are still struggling to find product fit to both themselves or their business that is modern and competitive, but comprehensively following the Islamic principles.

ALAMI Group’s Founder and CEO, Dima Djani, said this pre-series B Round is a strong validation that investors acknowledge the positive impact ALAMI is creating in Indonesia’s market.

“We see 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 going forward, as we see a huge and under penetrated market unfolding before us,” he added.

According to the statement, as Indonesian SMEs recover from the pandemic, the demand versus supply deficit for finance needed
by SMEs still stands at $108 billion to resolve this challenge, peer-to-peer lending (P2PL) has emerged as a revolutionary financial lending solution which is quick, convenient and reliable.

Since its inception in 2019, ALAMI has disbursed more than $200 millions with non performing finance (NPF) of 0 percent as per last month.

ALAMI currently has more than 111,000 peer-to-peer investors involved in almost 10,000 projects across the nation focused on exponential growth of Indonesian SMEs.

The company also acquired BPRS Cempaka Al-Amin (now Hijra Bank), the only Sharia rural bank in Jakarta, in 2021.

Early this year, Hijra Bank obtained a digital mobile banking license from the Indonesia Financial Authority (OJK).

Amidst the uncertain macro economic environment, the existing and new investors in this round show an incredible level of trust to the company providing solutions to the underserved 230 million Muslims, and their small businesses, in Indonesia.

“We are glad to double down our investment in ALAMI and continue to be part of ALAMI’s journey in revolutionizing the Sharia finance industry in Indonesia,” said Roderick Purwana, Managing Partner at East Ventures.

“With more than 230 million Muslims in Indonesia, Sharia finance is one of the fastest growing sectors within the banking industry,

“We truly believe that the strong expertise and integrity of Dima and Team, as proven through the company’s positive growth and KPIs surpassed, will continue to empower the banking industry in Indonesia, especially moving the financial inclusion towards sustainability,” he added.

ALAMI is a Sharia-based financial technology peer-to-peer lending company established in 2018 by Dima Djani, Harza Sandityo, and
Bembi Juniar. The firm obtained a license from OJK on May 27, 2020.

The firm has provided financing for more than 10,000 micro, small and medium enterprises (MSME) projects in strategic sectors to date in Indonesia.

Its ecosystem covers 482 cities in 34 provinces across Indonesia, both from the side of funders and beneficiaries, with ongoing commercial and social activities.

Indonesia FinTech firm Xendit reaches unicorn status with $150M Series C led by Tiger Global Management