SINGAPORE, March 2 (Bernama) — In a significant move to foster growth within the halal economy, Malaysia-based international fintech firm, Ethis Group, through HASAN Venture Capital, announces plans to raise an initial closing of US$3 million (RM14.2 million) this year. This strategic fund aims to fuel startups spanning technology to lifestyle sectors, providing a robust investment in the burgeoning market.
Strategic Investment for Halal Economy Growth
At the heart of this initiative is the HASAN Venture Capital, with a total target fund of US$10 million. Under the stewardship of Ethis Group’s managing director and HASAN’s managing partner, Umar Munshi, the venture capital firm seeks to not only raise funds from its investor community but also attract external investors. Each startup selected by HASAN will receive an investment ranging from US$60,000 to US$250,000, a move poised to significantly impact the recipients by providing them with the necessary financial backing to thrive in their respective sectors.
Linking Halal Economy to Islamic Finance Principles
The initiative by Ethis Group underscores the growing need for investment platforms that adhere to Islamic finance principles. In a similar vein, biniyog.io, a Shariah-compliant investment platform founded in Bangladesh, has been making strides in offering halal investment opportunities to businesses outside the formal banking services. The founders, Shabab Shahriar Khan and Muhammad Saeedul Alam, launched the platform to address the scarcity of halal investment options for small businesses, raising over Tk8 crore for approximately 1,100 investments using Musharaka and Murabaha contracts by August 2023. This emerging trend highlights a significant shift towards more inclusive and ethically aligned investment strategies within the global financial ecosystem.
Fueling Startups, Fostering Innovation
The commitment of Ethis Group and HASAN Venture Capital to invest in startups within the halal economy is a testament to their belief in the sector’s potential for growth and innovation. By providing financial support and resources, they aim to unlock the creativity and entrepreneurial spirit of startups, thereby contributing to a vibrant and sustainable halal economy. This initiative not only offers a lifeline to startups seeking to navigate the challenges of funding but also paves the way for a new era of Islamic finance that is integrated with modern technological advancements and lifestyle trends.
The move by Ethis Group through HASAN Venture Capital heralds a new chapter in the development of the halal economy. By bridging the gap between Islamic finance principles and the entrepreneurial needs of the halal sector, they are setting the stage for a future where ethical investment goes hand in hand with economic growth and innovation. As startups in this space receive the much-needed financial infusion, the broader implications for the halal economy and Islamic finance are profound, signaling a shift towards more ethically aligned and sustainable business practices worldwide.
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