Ethis launches Shariah Compliant Seed Fund
Ethical investment and social finance platform operator Ethis Group, has launched EthisX as part of its global expansion plan, by collaborating with pan-Asian venture capital firm Gobi Partners, to structure and set up a US$20 million Shariah-compliant seed fund.
The Fund is targeting to close its first round by the end of this year. This fund is Ethis Group’s first move into the venture fund space as well as Gobi Partners’ first-ever fully Shariah-compliant fund.
The Fund aims to benefit from the network of start-ups and scale-ups accessible by Gobi Partners, and Ethis with its relationships in the Halal economy and impact-investment space. Gobi Partners currently has US$1.5 billion of assets under management across North Asia, South Asia and ASEAN, while Ethis Group operates crowd-investment platforms approved by regulators in Indonesia, Malaysia and Oman.
The partnership is aimed at capturing the growth of startups in the Halal economy where startups adhere to Shariah law, and thus their products are built to serve a large Muslim community. The fund’s focus will be on the broader ethical investment agenda with emphasis on Environmental, Social, Governance and sustainable investments that also stretches beyond the Muslim community.
Founded in 2002, Gobi Partners is headquartered in Kuala Lumpur and Hong Kong & supports entrepreneurs from the early to growth stages and focuses on emerging and underserved markets. Gobi has raised 15 funds to date & has invested in over 320 startups and nurtured nine unicorns. Its investments include Malaysia’s first unicorn, car e-commerce marketplace Carsome, and British-Hong Kong biotech startup Prenetics.
In 2016, Gobi launched its TaqwaTech vertical which focuses on investments in Islamic ventures and the global Muslim economy. Most notable of its TaqwaTech investments is Dubai-based Umrahme, which is now the global market leader in online Umrah pilgrimage bookings with over 3.5 million pilgrims since its inception in 2019.
The joint Fund will invest in Shariah-compliant startups globally with an initial geographic focus in the MENA as well as the ASEAN regions. EthisX’s presence in the Sultanate of Oman is timely, as it can have direct access to the growing investment opportunities supported by the Oman Vision 2040 .