Gobi and Malaysian social finance firm to launch $20m Shariah fund

Malaysia-based social finance platform Ethis Group has teamed up with VC firm Gobi Partners to set up a US$20 million Shariah-compliant seed fund.

Representatives from Gobi and Ethis / Photo credit: Ethis

The joint fund will invest in startups that comply with Shariah law, initially focusing on startups in the ASEAN and Middle East and North Africa regions.

Set to have its first close by year-end, the investment vehicle aims to support startups that produce goods for the Muslim community.

“The establishment of this joint fund will allow us to channel investments into tech startups driving change and making an impact,” said Ethis COO Mohamed Shehzad Bin Mohamed Islam. “Venture capital is in high demand and suitable for ethical investment.”

Based in Malaysia and Hong Kong, Gobi Partners supports early- to growth-stage startups in emerging and underserved markets. So far, the VC firm has invested in more than 320 startups.

The companies expect the joint fund to benefit from Gobi’s network of startups and Ethis’ relationships in Shariah-compliant funding.

Although the Muslim community could make up nearly a third of the world’s population by 2060, its “digital needs are largely unmet or underserved,” said Gobi co-founder Thomas Tsao.

“Through this partnership with Ethis and the creation of this dedicated fund, we will now be able to fund, nurture, and support even more Muslim entrepreneurs,” he added.

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