Islamic peer-to-peer (P2P) finance platform ALAMI Group has closed a pre-series B funding round to support its aggressive expansion plan, particularly in the digital bank space.
Led by East Ventures (Growth Fund) alongside existing investors, AC Ventures, Quona Capital and FEBE Ventures, the round was also participated by US-based Capria Ventures. The funding amount was not disclosed; however, it was previously reported that ALAMI was seeking US$6-8 million in pre-series B funding to bolster its engineering and marketing teams. According to Crunchbase, ALAMI has raised US$67.5 million prior to this latest funding round.
The firm also reportedly plans to seek US$60-80 million in equity for its Series B next year.
“This pre-series B Round is a strong validation that investors acknowledge the positive impact ALAMI is creating in Indonesia’s market. We see the tremendous long-term potential that access to banking and Shariah compliant financing from our Hijra Bank can unlock for Indonesia’s 230 million Muslim and SMEs. We will commit more energy and resources going forward, as we see a huge and under-penetrated market unfolding before us,” Dima Djani, the group’s founder and CEO, said.
Hijra Bank, previously known as BPRS Cempaka Al-Amin, was an Islamic rural bank acquired by the P2P platform in 2021 as part of its digital banking ambitions. Early this year, Hijra Bank secured a digital mobile banking license from the Indonesian financial authority.
Founded in 2019 as a financial comparison marketplace, ALAMI has demonstrated phenomenal growth. It has disbursed over US$200 million in financing while keeping its non-performing finance at zero as at the end of September 2021. The SME financier has built an investor base of over 111,000 which are involved in nearly 10,000 projects across the Republic.
“We are glad to double down our investment in ALAMI and continue to be part of ALAMI’s journey in revolutionizing the Shariah finance industry in Indonesia. With more than 230 million Muslims in Indonesia, Shariah finance is one of the fastest-growing sectors within the banking industry,” shared Roderick Purwana, East Ventures’ managing partner.