Paragon Beneva Investama, the investment arm of regional cosmetics company ParagonCorp, has invested an unknown sum in Alami, an Indonesia-based Shariah finance business.
According to a statement from the firm, Alami will utilize the additional funding to further its efforts to create financial technology solutions. Additionally, it intends to increase access to “ethical, fair, transparent, and sustainable” funding that complies with Shariah.
Alami is a peer-to-peer lender that was established in 2018 and offers invoice finance to MSMEs in Indonesia. The business has given more than 3 trillion rupiah (about $191 million) to more than 10,000 MSME initiatives in the nation’s various vital areas.
The firm launched a mobile banking app called Bank Hijra earlier this month to formally announce its entry into the banking industry. Bank Hijra is a byproduct of the company’s 2021 acquisition of the rural bank BPRS Cempaka Al Amin, which is founded on the Shariah.
Alami will collaborate with ParagonCorp, a new strategic investor, to develop a halal lifestyle for its clients. ParagonCorp is the owner of various halal brands, including Wardah, Emina, and Kahf.
“ParagonCorp’s investment and superiority in building the empire of halal products help Alami continue to get more SMEs to access Shariah-based financing. The investment follows the launch of Bank Hijra earlier this December, which will be able to serve hundreds of millions of Indonesian Muslims,” Alami co-founder and CEO Dima Djani said.
Alami acquired a loan facility from Lendable in April 2022 for US$30 million, which it intended to lend to SMEs all around Indonesia. Before that, the business raised money through a number of rounds of fundraising supported by VC companies including EV Growth, AC Ventures, and Golden Gate Ventures.