JAKARTA (TheInsiderStories) -AC Ventures, Golden Gates Ventures, and Quona invested in equity and debt funding over than US$20 million in Alami Technologies, a sharia financial technology (FinTech) firm based in Indonesia. The peer-to-peer lending platform focused on lending to micro, small, and medium-sized enterprises (MSMEs) through the principles of sharia finance.
Dima Djani, founder and CEO of the company, said he aimed to grow the loan disbursement of Alami more than Rp1 trillion (US$70.92 million) to various sectors such as healthcare, farming, logistics, and food. After raised $1.5 million seed round led by Golden Gate.
The FinTech firm posting a threefold year-on-year growth and has zero percent non-performing loans in its portfolio. Djani said the investors were interested in investing in Alami because it had a mature business plan. This is also supported by the large potential of the Islamic market in Indonesia. Currently, the provider has disbursed loans of more than Rp200 billion.
Based on roadmap for Islamic finance industry, the country targeting a 20 percent market share for banking, insurance, and capital-markets by the end of 2024. While, global islamic finance assets are forecast to reach $3.69 trillion by 2024, according to the latest report by Refinitiv and the Islamic Corporation for the Development of the Private Sector.
In detail, the report said, islamic finance assets of Gulf Cooperation Council reached $1.2 trillion in 2019, followed by Middle East and North Africa at $755 billion, and Southeast Asia amounting to $685 billion. The Islamic banking sector contributes the bulk of the global assets.
These sector grew 14 percent in 2019, equating to $1.99 trillion in global assets, showed by the report. This compares with just 1 percent growth in 2018 and an average annual growth of 5 percent over the period 2015 to 2018.
According to the report, the top five developed countries in relation to Islamic Finance are Malaysia, Indonesia, Bahrain, Uni Arab Emirates, and Saudi Arabia. This year, Indonesia displayed one of the most notable improvements in the Islamic Finance Development Indicator, moving into second place for the first time due to its high knowledge and awareness ranking.
It said, the pandemic was a game changer as several Islamic banks reported losses and reduced profits throughout this year. The pandemic has also led to growth in some areas of the industry as some regulators turned to Islamic finance to mitigate the economic impact.
Corporate SUKUK issuance has also picked up after a cautious halt in the first quarter of 2020. The report indicates that companies are taking advantage of low borrowing costs to shore up their finances, while the pandemic continues to batter trade and economies.
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