Islamic SME crowdfunder Kapital Boost receives Shariah certification, eyes funding

Photo: Kapital Boost team at the Idealab session for startups, World Islamic Economic Forum 2015, Kuala Lumpur. From L to R: Ronald Wijaya (Partner, Indonesian representative), Firdaus Shariff (shareholder), Erly Witoyo (co-founder, Managing Partner), and Umar Munshi (co-founder, Partner) / Courtesy Kapital Boost

Kapital Boost, Asia’s first Islamic SME crowdfunding platform, yesterday received Shariah certification from the Financial Shariah Advisory & Consultancy (FSAC) for its murabahah crowdfunding structure, the company said in a statement.

The Singapore-based crowdfunder uses the murabahah structure to help SMEs meet their short-term financing needs for asset purchases. The platform matches SMEs with investors who pool funds to purchase goods or equipment, and thereafter on-sells them to the SMEs at a mark-up. 

Kapital Boost has raised more than 1.3 million Singapore dollars ($0.9 million) for 26 SME campaigns since it was founded in July 2015, said the company. 

Kapital Boost founder and managing partner Erly Witoyo told Salaam Gateway the Shariah certification will better assure SMEs and investors the company provides Shariah-compliant services.

"We hope this will attract investors for our crowdfunding campaigns as well as those interested in taking stake in our business (VCs and angel investors)," Witoyo told Salaam Gateway in an email. 

The company has been bootstrapped and is now ready to look for seed funding, said Witoyo.

This year it received 50,000 Singapore dollars from Singapore's National Research Foundation's iJam grant, which is dedicated to digital media projects "that are creative, novel and with the potential to create impact to the world at large."

The Shariah certifier, Singapore-based FASC, is an initiative under Pergas Investment Holdings, which is a subsidiary of the Singapore Islamic Scholars and Religious Teachers Association.

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