Ethis Group, an ethical investment and social finance platform operator, is collaborating with venture capital firm Gobi Partners to structure and set up a US$20 million Shariah-compliant seed fund.
The fund, which is targeted to have its first closing by the end of this year, is Ethis Group’s first move into the venture fund space as well as Gobi Partners’ first-ever fully Shariah-compliant fund.
Once launched, the joint fund will invest in Shariah-compliant startups globally with an initial geographic focus in the MENA as well as the ASEAN regions.
The fund will also focus on the broader ethical investment agenda with emphasis on Environmental, Social, Governance (ESG) and sustainable investments that also stretch beyond the Muslim community.
This collaboration combines the venture guiding acumen of Gobi Partners which currently has US$1.5 billion of assets under management across North Asia, South Asia and ASEAN, with Ethis Group’s growing group of fintech investment and crowdfunding platforms in Indonesia, Malaysia and most recently Oman.
Headquartered in Kuala Lumpur and Hong Kong, Gobi has raised 15 funds to date, invested in over 320 startups and nurtured nine unicorns.
In 2016, Gobi launched its TaqwaTech vertical which focuses on investments in Islamic ventures and the global Muslim economy.
“The establishment of this joint fund will allow us to channel investments into tech startups driving change and making an impact.
Venture capital is in high demand and suitable for ethical investment,”
said Mohamed Shehzad Bin Mohamed Islam, Chief Executive Officer of Ethis Investment Platform LLC (EIP).
“Muslim consumers represent a US$2.2 trillion market opportunity, and the Muslim community is anticipated to make up more than 31% of the world’s population by 2060, however, the Muslim community’s digital needs are largely unmet or underserved.
Through this partnership with Ethis and the creation of this dedicated fund, we will now be able to fund, nurture and support even more Muslim entrepreneurs,”
said Thomas Tsao, Co-founder of Gobi.
