E-commerce platform Baloy has raised over RM6.18 million (US$1.49 million) through an Islamic equity crowdfunding (ECF) exercise, one of the largest ECF campaigns in Malaysia.
Conducted over three months, the campaign on Shariah compliant Ethis Malaysia attracted investments from almost 20 markets including Singapore, Malaysia, China, Palestine, Saudi Arabia, Jordan, Pakistan, India, the UK, South Africa, Mauritius and France.
“The fact that the Ethis platform was able to facilitate Shariah compliant retail investors from close to 20 different countries shows that we have matured as a conduit for investment to flow into Malaysia,” said Ethis Malaysia CEO Wan Mohd Dazriq Wan Zulkiflee. “We hope that this global approach to raising the much-needed capital for Malaysian companies is utilized as the primary means of funding innovative business ideas for local entrepreneurs and SMEs looking to expand as the economy starts to grow post-pandemic. This is also aligned with the aspiration of 12th Malaysia plan to support MSMEs as well as entrepreneurs via fintech and crowdfunding capabilities.”
Part of Ethis Group which operates several investment platforms including charity platform GlobalSadaqah, Ethis Malaysia is a recognized market operator licensed by the Securities Commission Malaysia; it was the first Islamic ECF platform to be regulated in the country.
“The Halal retail and food distribution remain an important component of the Shariah compliant economy that will see considerable growth post-pandemic as consumers look to spend as the economy recovers. Ethis will continue to make available sustainable and innovative opportunities to grow value for institutional and retail investors alike; especially with investments that bring social benefit such as Baloy’s, which goes hand in hand with Ethis’ circulate good ambition in the real economy,” added Wan Mohd Dazriq.
Established in 2019, Baloy is an online grocery shopping platform which has adopted an online-to-offline(O2O)/consumer-to-market (C2M) business model. By combining C2M and O2O, the platform is able to be price competitive.
“The segment of the market that we are targeting, the B40 (bottom 40% of Malaysian household income) now B50, was hardest hit by the pandemic but it remains resilient and requires an innovative approach to ensure that the needs of this group are met,” Yen Chee Yung, the co-founder and CEO of Baloy, shared. Baloy added that its business model offers a solution to lowering food-based inflation, by improving consumers’ purchasing power, and by assisting small traders and SMEs to empower them towards recovery from the long-tail economic effects of the COVID-19 pandemic.