Shariah fintech firm Alami bags $20m in round led by AC Ventures, Golden Gate

Alami Technologies, a Shariah fintech platform based in Indonesia, announced that it has raised over US$20 million in equity and debt funding in a round led by AC Ventures and Golden Gate Ventures.

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

Other investors including Quona Capital also participated in the fundraise.

Alami is a licensed peer-to-peer lending platform focused on lending to micro, small, and medium-sized enterprises (MSMEs) through the principles of Shariah finance. It provides access to Shariah-compliant debt capital for MSMEs in Indonesia, as well as lending opportunities to individuals and financial institutions in the region.

“We believe that the existing players in the Shariah financial industry have just utilized a fraction of its potential,” said Dima Djani, Alami’s founder and CEO. The social finance space, for example, can be further explored, he adds.

The company aims to grow 4x to disburse more than 1 trillion Indonesian rupiah (US$71.8 million) to sectors such as healthcare, farming, logistics, and food, among others.

The fundraise comes a year after Alami closed its US$1.5 million seed round, which was also led by Golden Gate Ventures.

Alami claims to be the largest licensed Shariah P2P lender in Indonesia, posting a threefold year-on-year growth. The company also said it has 0% non-performing loans in its portfolio.

Indonesia’s new five-year roadmap for its Islamic finance industry should help drive its development, said Fitch Ratings. The plan targets a 20% market share for the sector – including banking, insurance, and capital-markets – by the end of 2024.