Jakarta, 26 April 2022 — ALAMI became the first financial institution to receive a sharia-compliant financing facility from Lendable, a leading provider of financing to fintech globally. Lendable will provide up to USD 30 million as a senior secured facility under a Wakalah bil Istithmar structure to ALAMI Group. The deal reinforces ALAMI’s position as a trusted and credible financial technology platform that provides sharia-compliant productive financing to SMEs in Indonesia.
“The facility will be channeled to SME projects in Indonesia through ALAMI’s platform. As a sharia-compliant peer-to-peer lending platform, ALAMI hopes to contribute to filling the financing gap of Indonesia’s SMEs. Today, there is an approximately USD 165 billion financing need from SMEs, however only USD 57 billion has been met, leaving a considerable gap to be filled. With this facility we aim to stimulate and revitalize the SME sector, as the backbone of our national economy. Of course, we pray that this effort can accelerate the development of Indonesia’s halal industry, which is also in line with the Government’s current vision” said Dima Djani, CEO of Alami Group.
The potential of the halal industry is very promising: in 2019, its size was estimated at USD 2.2 trillion, including the culinary, pharmaceutical, cosmetics, fashion, and tourism sectors. The industry is projected to increase to USD 3 trillion in 2023*. Indonesia’s global ranking has continued to improve, reaching the 4th position as measured by the Global Islamic Economy Indicator (GIEI), after Malaysia, Saudi Arabia, and the United Arab Emirates. Indonesia’s halal industry is an increasingly attractive opportunity for international investors, due to the growing awareness of its ecosystem players including providing financing to support working capital and capital expenditure to meet growing demand. Financing to support the working capital and capital expenditure needs of fintech innovators like ALAMI helps meet a growing demand for impactful, sharia-compliant solutions.
Furthermore, Dima explained that this facility provides proof that ALAMI, as a financial technology platform, is trusted due to its healthy business performance, sound governance, and focus on social impact, enabling it to establish partnerships with reputable global funds like Lendable. “We see Lendable has values that are in line with ours, which are helping SMEs to have access to financing and focusing on social impact. With the support we have received from Lendable, we are bullish to meet the financing needs and accelerate the growth of ALAMI’s performance this year,” said Dima.
“We are proud to have concluded our very first Sharia-compliant facility and are honored to have worked with the ALAMI team on this milestone. Lendable’s facility will provide ALAMI with scale and capacity to swiftly and sustainably grow through its innovative and tech-enabled working capital solutions to a significant number of underserved and impactful beneficiaries across Indonesia” said Hani Ibrahim, Lendable’s Chief Investment Officer.
Leveraging collaborations with leading global investors such as Lendable, ALAMI aims to at least double its disbursement volumes from IDR 2.1 trillion, and increase the number of SME projects funded, which currently stand at over 8,500 projects.
* Source : Indonesia’s Masterplan Sharia Economic 2019–2024 by KNEKS
About ALAMI Group
ALAMI is a sharia-based financial technology company established in 2018 by Dima Djani, Harza Sandityo, and Bembi Juniar. ALAMI obtained a license from the Financial Services Authority (OJK) on 27 May 2020. Currently, ALAMI is one of the largest sharia-based financing platform for MSMEs globally, with more than IDR 2 trillion loans disbursed and a Non-Performing Financing (“NPF”) rate of 0% (Success Rate of Repayment of 100%). ALAMI has provided financing to more than 8,500 MSME projects in strategic sectors in Indonesia. ALAMI’s ecosystem covers 482 cities / regencies in 34 provinces across Indonesia, both from the side of funders and borrowers, with a focus on commercial and social activities. ALAMI’s efforts have gained recognition in the form of prestigious awards, including “Best P2P Financing Platform” at the global level by The Asset Triple A Awards for two consecutive years since 2019. For more information, visit http://alamisharia.co.id.
Lendable is a leading debt finance provider to fintech companies across frontier and emerging markets that create access to new financial products and services for un- and under-banked populations. Lendable finances fintech companies that facilitate consumer and MSME credit, productive asset finance, payments, remittances, and digital marketplaces. From its offices in Nairobi, London, and Singapore, and using its proprietary technology and data, Lendable directly originates, structures, underwrites, and monitors all transactions. To date, Lendable has disbursed over $250m to fintechs in over 14 countries.
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Ekky Ghea Novantosa (Ms.)
Corporate Communication ALAMI Group