Ethis Group, through its Halal VC fund HASAN.VC, has been actively investing in ethical and halal tech startups. As part of its commitment to fostering innovation, the firm participated in AsiaStartupExpo, where it provided guidance to shortlisted AI startups. By supporting early-stage companies, Ethis aims to drive ethical investment and create impact-driven businesses.
Ethis Group, founded by Umar Munshi and Ronald Wijaya, operates across Asia and the GCC. The company connects private capital with businesses and projects that generate profits while creating social impact. Its key ventures include HASAN.VC, a Halal-focused venture fund and accelerator, Ethis P2P Lending, which finances MSMEs in Indonesia, and GlobalSadaqah, a platform that channels funds to NGOs.
Umar Munshi, the founder of Ethis Group and Managing Partner of HASAN.VC, started his entrepreneurial journey at 18. During his national service in Singapore, he served as an Inspector, where he developed leadership skills and a deep sense of empathy. At 23, he moved to Indonesia, where he witnessed economic disparities firsthand, shaping his drive to create ethical financial solutions.
His mission became even clearer at 26 when his health-tech startup was forced to close due to fraud, leaving him in debt and exposing him to the harsh realities of the financial system. These experiences led him to build Ethis Group, focusing on ethical investment and sustainable business growth.
In this interview, Umar shares insights on ethical investing, the role of AI startups in the halal economy, and the impact of venture building in emerging markets. Learn about Ethis Group’s investment strategy, key trends in the sector, and advice for entrepreneurs looking to build ethical and impact-driven businesses.
What inspired you to launch HASAN.VC, and what is its core investment philosophy?
HASAN Venture Capital was founded by entrepreneurs who understand the journey of building startups from the ground up. Having faced the challenges of limited resources, lack of community, and a disconnect between traditional investors and the needs of entrepreneurs, we set out to create a VC firm built by founders, for founders.
Our approach is simple: we invest in the people behind the ideas. Beyond financial backing, we bring decades of experience and relevant relationships coupled with our entrepreneurial DNA to guide and empower our startups to achieve long-term, sustainable success. This philosophy has given rise to what we call camel startups – resilient businesses built to withstand challenges and emerge stronger.
By prioritizing founder-first values, HASAN.VC is dedicated to empowering entrepreneurs and creating partnerships that extend far beyond funding. We foster growth and innovation, ensuring that both the needs of the founders and the vision of the investors are aligned.
How do you balance profit-driven investment with social impact?
My default mindset is that businesses must not cause harm to people or the planet, and where possible, create benefit for society. I view business as an avenue to do good and serve humanity. I believe there really is no tradeoff between profits and social impact, i.e. both can be reaped together, and in many cases can create a virtuous cycle leading to long-term business success.
What key trends are shaping the future of the halal economy, and how do you see yourself contributing to its growth?
An obvious trend is the shift of consumers and businesses towards ethical brands and solutions. Halal startups inherently uphold ethical values based on Islamic principles of justice, transparency and doing good, which has universal appeal. HASAN.VC works closely with our accelerator graduates and portfolio startups to enhance their business models, culture and core values to level-up in terms of social impact and ethics.
What types of startups does HASAN.VC focus on, and what makes a startup a good fit for your portfolio?
While we are generally open when it comes to sectors, we are particularly focused on supporting early-stage tech startups that aim to benefit humanity and address the unique needs of the Muslim community. One of our cohort startups has the potential to transform how industries approach sustainability, offering scalable and eco-friendly solutions that contribute to global efforts to reduce carbon footprints. Another venture in Islamic fintech is enhancing financial inclusion by making services more accessible to underserved Muslim communities. We are interested in startups that have the potential to transform industries and create a positive impact.
What common misconceptions do people have about halal investing, and how do you address them?
In modern day application, the main difference unique feature of halal investments is the avoidance of interest income paid on capital invested. In some cases, the investment may seem similar to interest-based ones in terms of the offering, but it is fundamentally different, where the source of income is based on actual generated profit or from a fee from providing a service to investors, for example in the case of Islamic banks that give a fixed return.
Other types of Halal investment can be participatory in nature, where investors share in any profit generated while also being liable for losses, depending on the actual performance of the underlying business activity or transaction. This is a fairer approach, where investors participate in the sharing of risk and reward, creating a more equitable partnership-based relationship between investors and investees. Investors who are not exposed to this approach may misunderstand the risks and potential upside involved. In all cases, the solution is to provide investor education and awareness in simple and relatable terms.
What are the biggest challenges faced by halal and ethical startups today?
Scaling up is one of the biggest challenges. Typically, there’s strong early demand for products and services that are halal and are positioned for the Muslim market, especially from practicing Muslims who actively seek halal as part of their faith. Once this demand is met, the challenge is expanding to a wider audience based on the value and merit of the solutions and offerings. A major challenge here is educating people about what halal truly represents and addressing misconceptions. However, increasingly there are also startups that do not brand themselves as halal, which may make its offerings more widely accepted, but conversely does not tap into the natural demand of Muslims looking for halal brands.
How do you see the role of Islamic finance evolving in the global venture capital landscape?
Islamic finance is currently underrepresented in the global venture capital landscape. There’s a significant gap, particularly in terms of SME funding and startup investment. The Muslim community in many parts of the world has in recent history been more focused on consumption than entrepreneurship, but this is changing especially in the past three years. More Muslim entrepreneurs are emerging, and there’s a growing awareness of the need for more influence over products and industries.
We are working to bridge the gap between Islamic finance and the startup ecosystem. Venture capital has suffered in recent years due to rampant speculation, hype, and greed. Additionally, VCs have become more risk averse, with various terms and clauses protecting investors from losses and shifting risks to founders and early investors, creating imbalances among shareholders. This has pushed the VC world to return to basics, one that is more in line with halal finance, which aligns investments with shared risk and rewards.
What advice would you give to entrepreneurs looking to secure investment from HASAN.VC?
Stay focused on building value. Investors are looking for businesses that are not only profitable but also have a positive impact on society. Adaptability is essential – be open to feedback, keep refining your product or service, and stay resilient when facing challenges. Finally, building a strong team and having a clear, ethical vision.
Ethis Group and HASAN.VC are laying the groundwork for a future where ethical and halal investments thrive. With sectors like fintech, ethical e-commerce, and digital education rapidly expanding, the need for financial solutions that align with ethical values is more relevant than ever. By supporting startups that focus on both profitability and social impact, Umar Munshi and his team are demonstrating that ethical finance can be both sustainable and commercially viable.
Looking ahead, Umar envisions HASAN.VC as a model for halal venture capital, proving that it can succeed while staying true to its values. He hopes to inspire more funds to adopt this approach, fostering a global ecosystem of ethical investment. Through initiatives like AsiaStartupExpo and strategic investments in impact-driven startups, Ethis continues to play a key role in shaping the future of ethical finance, offering valuable insights for entrepreneurs and investors alike.
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