The Shariah compliant crowdfunding community could soon welcome another peer as a Saudi platform is looking to enter the space as the world’s first Shariah compliant crowdfunding avenue serving agricultural SMEs.
AgriFunder, one of the three finalists which presented at the RFI Summit 2017 in Zurich earlier this month, is looking to close the multibillion dollar agricultural financing gap by connecting international investors to agri SMEs on a Shariah compliant basis and to leverage these agriculture investments to alleviate poverty.
“The starting point is reputable partner financial institutions (PFIs) who are interested in supporting SMEs that are adjacent to their core client base. Partnering with an international crowdfunding platform enables PFIs to extend financing on more favorable commercial terms,” explained AgriFunder on their media platform. These PFIs will assist in screening applicants and administering AgriFunder’s financing for a fee with the option of becoming a co-financier; and repaid funds can be reinvested, ensuring sustainability.
Conceptualized by an Islamic finance associate with the Islamic Corporation for the Development of the Private Sector, the platform will first leverage the IDB Group’s internal and external networks to promote the platform with a view of launching in the final quarter of 2017.