Sedania Innovator Bhd has made an entry into the Islamic mortgage market worth RM200 billion following its acquisition of a 20% stake in Wasiyyah Shoppe Bhd.
The acquisition was completed via Sedania’s financial technology (fintech) unit Sedania As Salam Capital Sdn Bhd, for a purchase price of RM3 million cash, the company said in a statement on Wednesday (March 1).
Under the equity purchase agreement, Wasiyyah Shoppe provides a profit after tax guarantee of RM3 million for a 24-month financial period from June 30, 2024.
“The acquisition of Wasiyyah Shoppe is undoubtedly a strategic move to elevate Sedania to the next level of providing innovative, sustainable Islamic fintech solutions to its customers,” said Sedania founder and managing director Datuk Azrin Mohd Noor.
Sedania As Salam Capital Sdn Bhd chief executive officer Nisa Ismail further stated that the addition of a shariah-compliant fintech solution will enable the group to provide more Islamic financial products digitally, such as its digital hibah platform, to local financial services institutions.
“Backed by an established track record within the Islamic fintech space, Sedania As Salam will strive to develop and implement a digital automated system for hibah, which enables efficient and profitable operations for Wasiyyah Shoppe, thus enhancing our returns on investment over the long term,” she added.
“This represents a strong synergistic development, as we can offer the digital hibah platform to financial institutions as a supplementary value-added Islamic estate planning service for their Muslim clients who purchase assets such as property.”
Hibah is known as an estate planning instrument based on a shariah-focused perspective, and provides Muslim individuals the ability to plan in advance the distribution of their inheritance to heirs or non-heirs.
Azrin added that the incorporation of hibah services will enhance the long-term success of Sedania’s fintech segment, as only 0.2% of 15 million Muslims in Malaysia have executed hibah to date.
He also stated that the business model and values of Wasiyyah Shoppe correspond strongly with the group’s mission to improve lives sustainably, as the hibah method promotes socio-economic sustainability by ensuring surviving family members are unburdened in the event of unanticipated deaths.