Preliminary discussions between Indonesia’s Shariah compliant peer-to-peer platform ALAMI and Turkish officials could result in a new Islamic fintech start-up that serves both countries.
While it is still early days for the potential project, ALAMI CEO Dima Djani is optimistic, having already started talks with Turkish deputy ministers and members of Turkey’s participation banking sector.
“I think Turkey is very much like Indonesia was about five to 10 years ago, where the environment allows for a lot of start-ups to be established, especially as the government is working on regulations that further support them,” Dima, told IFN, the sister publication of IFN Fintech.
There is a lot of potential in a partnership between the two countries, Dima noted, and ALAMI is now just waiting for the regulations to be finalized to start working on a joint Islamic fintech start-up in earnest.
ALAMI itself has just successfully closed a Series A+ funding round that raised US$17.5 million, bringing its total raised amount in funding rounds to US$37.5 million to date.
The success of the funding round is a reflection of growing interest in the Islamic fintech space by mainstream investors. “Traditionally, mainstream investors don’t understand Shariah finance and so are not keen on investing in it, but I think as the market has grown, especially in Islamic jurisdictions like Indonesia and the GCC, I think those investors can appreciate that,” Dima said.
The latest funding comes as ALAMI prepares to launch a digital platform for its recently acquired Bank Hijra, a local Shariah compliant rural bank.