Alami to shed 40% of workforce amid strategy shift

Alami, a Shariah-compliant fintech firm based in Indonesia, is laying off around 40% of its workforce as part of a broader shift toward sustainable growth, a source close to the matter told Tech in Asia.

The move will primarily affect employees in the company’s research and development, product, and engineering teams. Alami plans to inform staff tomorrow, February 20, and implement the cuts the following day. The exact number of employees to be terminated is unclear.

(From left) Alami co-founders Harza Sandityo, Dima Djani, and Bembi Juniar / Photo credit: Alami

In Alami’s view, its peer-to-peer (P2P) lending business has reached “maturity” while its banking arm, Hijra Bank, has established its core products, according to the source. Moving forward, the company expects growth to be more organic.

Since its inception, Alami has disbursed US$374 million and amassed 11,743 active lenders and 2,101 borrowers on its platform.

While the startup may still seek additional funding, it is now focused on driving long-term profitability, the source adds.

Tech in Asia has reached out to the company for comment.

Founded in 2018 by Dima Djani, Harza Sandityo, and Bembi Juniar, Alami holds licenses for Islamic P2P lending and digital banking in Indonesia.

The company has secured a total of US$67.6 million in disclosed funding. The most recent investment came from Intudo Ventures, East Ventures, AC Ventures, Quona Capital, and Golden Gate Ventures in October 2023.

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The downsizing will not disrupt operations or affect customers, lenders, or borrowers on the platform, according to the source. The person added that Alami also expects its P2P lending business to break even within the next few months after the layoffs.

Tech in Asia understands that retrenched employees will receive severance packages in line with regulatory requirements.