EthisCrowd raises seed funding for its Islamic crowdfunding platform

The EthisCrowd team in front of a housing development in Indonesia. Photo credit: EthisCrowd.

Islamic real estate crowdfunding platform EthisCrowd has raised a seed round worth US$363,000, it announced today. The round was led by Azmi Global, a subsidiary of Malaysian law firm Azmi & Associates, which specializes in Islamic finance, and Singapore-based venture fund Quest Ventures. Angel investors from Singapore and the Middle East also joined in.

EthisCrowd will use the seed funding to expand its business in Asia-Pacific.

EthisCrowd, also known as Club Ethis, bills itself as the world’s first Shariah-compliant crowdfunding service. Shariah-compliant funds are prohibited from investing in companies whose income comes from selling alcohol and pork products, pornography, gambling, military equipment, and weapons.

The Singapore-based company has dealt with investments into small- and medium-sized businesses since it was founded in 2014, but lately it’s been focusing on social impact real estate investments.

The startup claims to have processed US$2.6 million that went into building 5,000 affordable homes, with returns of 10 to 16 percent on average. This year, it says it has invested US$725,000 in subsidized housing development projects in Indonesia.

60 percent of the overall investment processed by the company comes from Singapore, while an increasing number of investors originate from the Middle East.

EthisCrowd will use the seed funding to expand its business in Asia-Pacific, improve corporate governance and project selection, and continue developing its tech.

Converted from Singapore dollars. US$1 = S$1.38

See: Club Ethis lets anyone with $800 invest in Southeast Asian startups