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Kapital Boost receives Shariah pronouncement on Murabaha crowdfunding

Wednesday, December 14, 2016


Kapital Boost, Asia’s 1st Islamic SME crowdfunding platform, today received a Shariah pronouncement from the Financial Shariah Advisory & Consultancy (FSAC) on its Murabaha crowdfunding structure.

The Shariah Pronouncement was a thorough process requiring several months to complete. As part of its review, the Shariah Committee was presented with the business model, legal structure, processes and documentation relating to Kapital Boost's crowdfunding.

Kapital Boost utilizes the Murabaha or trade-based financing structure to help SMEs meet their short-term needs for asset purchase. Its online platform matches these SMEs with Investors who pool funds to collectively purchase goods or equipment, and thereafter on-selling the same to the SMEs at a mark-up. To date, more than SGD1.3 million has been raised for 26 SME campaigns.  

Said Erly Witoyo, founder of Kapital Boost, "We are honored for the Shariah Pronouncement on our Murabaha financing structure by FSAC. This review is a reflection of our commitment to uphold the highest standards of Shariah in our operations and service offerings. It will also instill greater investor confidence, which will enable us to grow rapidly by reaching out to markets actively seeking Islamic or ethical investments."

Kapital Boost was launched in July 2015 to address 2 main issues - the lack of Shariah compliant retail investment opportunities and poor access to mainstream financing by the SMEs. Its focus on Shariah compliance will continue to benefit both Muslims and non-Muslims alike. Being transparent, ethical and supporting real economic activities ensure that the financing activities are productive while risks are adequately managed.

"Currently there are no Shariah compliant crowdfunding for SMEs in the Asian market and Kapital Boost will be the first platform offering such service," noted FSAC’s Shariah Committee member Dr Shamsiah Abdul Karim.



Kapital Boost focuses on growing communities. Whether it's helping SMEs grow or protecting the social welfare of less-privileged communities, our Singapore-based hybrid crowdfunding platform allows our members to invest or donate in a way that is ethical and Shariah-focused. We offer three services for our clients and members.


SME Crowdfunding

SMEs are often disadvantaged in their access to funds for business expansion. Kapital Boost addresses this problem by offering small businesses short-term financing alternatives with fast and friendly approval process and at competitive rates. Via a Murabaha (cost plus profit) structure, SMEs can raise financing for working goods or equipment purchases. They may also finance projects through a Mudharabah (profit sharing) structure. 


Donation Crowdfunding

Investing is not only for financial returns. Kapital Boost offers members the opportunity to invest for the Akhirah (hereafter). Our Donation Crowdfunding platform allows members to support non-profit, social-based projects in less-privileged communities within the region. We believe improving social welfare is also a means of accelerating community growth. 


Private Crowdfunding

For SMEs who do not meet our minimum requirements for crowdfunding via our platform, we give them the opportunity to raise financing by targeting their own group of investors. This is an opportunity for SMEs to professionally market their funding needs to friends, families, and fans. Kapital Boost offers SMEs services in campaign creation to attract investors, and in structuring financing agreements to reduce uncertainties and potential conflicts between the SME and investors.



Financial Shariah Advisory and Consultancy (FSAC) was introduced post 2008 financial crisis with the intention of creating awareness and promotion of Islamic banking and finance amidst the uncertainties of the global financial and economic landscape. It is an initiative under Pergas Investment Holdings (a subsidiary of Singapore Islamic Scholars and Religious Teachers Association) to work closely with the community and institutions to raise awareness on Islamic finance and increase financial literacy. 

FSAC believes that the principles of Islamic financial system forge a closer link between real economic activity that creates value and financial activity that facilitates it. The suitability and superiority of a Shariah compliant system over conventional system lies in its promise to ensure that good returns to investments shall be accompanied by promotion of the good of the society as a whole.


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