Ficus Capital (Ficus), the world’s first Islamic Environment, Social, and Governance (ESG-i) venture capital firm, announced today that they’ll be investing RM2 million into local green technology firm KLEAN.
Best known for establishing Malaysia’s first Reverse Vending Machine (RVM) ecosystem, KLEAN operates an AI-powered digital container deposit system. These can be found in publicly accessible areas like petrol stations and shopping malls.
Ficus’ new investment into this homegrown company will further support KLEAN’s initiatives in three main areas:
- Container recovery
- Network expansion of KLEAN’s RVMs
- Enhancement of its regional operations in Malaysia, Indonesia, Singapore, and Fiji
For context, RVM refers to a recycling machine that allows people to insert used or empty glass bottles, plastic bottles, or aluminium cans in exchange for rewards. In KLEAN’s case, the rewards are benefits like Grab vouchers and discounts on ETS train tickets.
All you have to do is collect points by recycling. Each container deposited will earn you 10 points. The points you collect will be displayed on its KLEAN the World mobile app, where you can redeem the rewards.
KLEAN’s Smart RVMs uses its proprietary AI system that can recognise the brands and type of material of the deposited containers. This facilitates the process of sorting recyclables and optimises recycling operations.
But its value extends beyond that. “Our innovative technology also provides valuable data and insights, driving us closer to a cleaner, greener future,” KLEAN’s co-founder and CEO, Nick Boden, shared.
KLEAN produces detailed ESG data down to the container’s number, the demographic of recyclers, and popular recycling times. This data is then shared to its partners for reporting purposes and to improve their sustainability options.
Driving growth in the sustainability industry
“Ficus’ investment in KLEAN is a vote of confidence in the company’s future. This additional capital could be a major driver of our growth,” Nick stated in the press release.
“Their commitment to sustainable and ethical investment aligns perfectly with KLEAN’s mission, strategically enabling us to expand our network of RVMs and enhance our operational presence across the region.”
Ficus specialises in Shariah-compliant ESG investing, which resonates with KLEAN’s values. Their strong presence in Southeast Asia also complements KLEAN’s planned expansion into ASEAN markets.
The RM2 million investment fund is backed by the Malaysian government through MAVCAP, which provides another layer of credibility and potential for future support.
The global green technology and sustainability market is reportedly projected to grow from US$19.83 billion in 2024 to US$83.59 billion by 2032, at a compounded annual growth rate (CAGR) of 19.7 percent. This is based on research done by Fortune Business Insights.
“As awareness of social and environmental issues continues to grow globally, so does the demand for sustainable investment options that align with ethical and religious values. The ESG-i sector stands at the intersection of these trends, offering investors the opportunity to make impactful and socially responsible investments while adhering to Islamic finance principles,” Ficus’ Managing Partner Abdullah Hidayat Mohamad, said.
At the time of writing, there are 100 RVM units across the aforementioned four countries, with the majority being in Malaysia. Through this investment, we hope to see more of these machines outside of the Klang Valley soon.
- Learn more about Ficus Capital here.
- Learn more about KLEAN here.
- Read other articles we’ve written about Malaysian startups here.
Featured Image Credit: KLEAN