Terms and Condition

Kapitalgrow Non-Interest Multipurpose Cooperative (hereinafter ‘Kapitalgrow’ ‘we’ ‘us’) sets out the Terms and conditions that binds the investment portfolio on our platform.


Key terms:

Registered Users (hereinafter ‘Users’)- These are persons who have signed up or registered an account on our platform to perform any transactions such as deposit, investment and other services.


Investors – These are persons who have invested in our investment products or services .


Overview of investment

Kapitalgrow designs and offers investment products in agriculture ecosystem that are shariah complaints as reviewed and approved by our Shariah Advisory Committee.


Investment process

Our investment process is well-curated to provide low-medium risk investments for our investors. We go through the following for all investment opportunities:


  1. Our investment team conduct market research and identify viable investment opportunities with verified and promising Agric business opportunity while working with in-house and external farmer partners.
  2. These investments will then be subject to examination by our advisory committees both business and shariah advisors.
  3. Once approved and certified, members are invited to subscribe to the investments which will be registered in each member’s name.
  4. Project execution and implementation commence immediately by the investment team.
  5. Project monitoring and evaluation are performed with the status report given to the members on a periodic basis.
  6. At the completion of the Investments period, the net returns is distributed to the members registered Accounts.
  7. The project is completed and the investment closed.


Investment structure

We have two structures for our investment portfolios:

  1. General investment
  2. Specific investment


  1. General investments – These are investments we run independently in-house for deposits made by users. Such deposits are invested across our investment opportunities throughout the year.


The investment risk is usually low to prevent any loss of capital. The investment is expected to generate a projected RoI of 10-15% per annum.


Withdrawal of capital and return is allowable in 90 days time from the date of deposit.


  1. Specific investments – These are investments targeted at some notable investment opportunities which are released to users and prospective users at periodic interval.


Terms and conditions of such specific investments are always detailed in the investment memo released to investors.


Investment model

Kapitalgrow employs the following Islamic finance products for our investments:


  1. Mudharabah: Mudharabah is a profit-sharing contract in which one party, the Rab al Maal (the investors) provides funds and the other party, the Mudarib (Kapitalgrow) provides management expertise to carry out an investment project.


  1. Musharakah: Musharakah is a profit-sharing contract where two parties (investors and Kapitalgrow) come together as joint ventures or partners, contribute capital to carry out an investment project.


  1. Wakala: Wakala is an agency-principal contract whereby the principal, the Muwakkil (investors) authorizes the agent, the Wakeel (Kapitalgrow) to carry out an investment project


For any investment, Kapitalgrow can use any of this model subject to review and approval of our Shariah Advisory Committee.


Currently, we use mudharabah contract for the General Investment where the deposits made by the investors (Rab Al Maal) are invested by Kapitalgrow (Mudharib) in investment opportunities throughout the year. Profits therefrom are then distributed between investors and Kapitalgrow in 50:50 ratio.


Return expectation and distribution

  1. General Investments are expected to generate around 10-15% per annum to our investors based on 50:50 sharing ratio. Any amount in excess of 10-15% to our investors are further distributed in the ratio of 70:30 ratio to Kapitalgrow and the investors.


Investors can request for capital and return at every 90 days interval.


  1. RoI on Specific Investment will be detailed in the investment memo released to the investors at the time of investment capital calls. Same applies to the Distribution.


Risk management

We understand that, in this industry of ours, risk is a big deal for all the stakeholders and most importantly, for our investors.


However, we also know that for us to earn a fair return for our investors, we need to take calculated and considerable level of risk.


Hence, we have designed a robust risk management procedures for any investment we undertake.


Foremost, our investments go through a detailed analysis at initial stage to identify the good and bad sides. This is done through our preliminary market research and analysis.


Once we are satisfied with the risk threshold, we then take necessary safeguards which includes

  1. Insurance – all investments are asset-backed and involve investing in real tangible commodities or assets which can be insured. We insure the commodities we invest by using takaful products which protects risk of loss of such commodities. Where necessary, we also take an insurance policy on goods-in-transit where necessary for transportation of the commodities or assets from the sources to the destinations.


This ensures that risk of loss of capital for our investors is reduced as we can call on Takaful to reinstate our positions in commodities and assets before the insured events happen.


  1. Partner with trusted Farmers – Kapitalgrow carries out its investment projects with trusted and knowledgeable farmers. We do this by ensuring all our business partners go through a screening process to validate their business model and proposed investment opportunities.




Withdrawal Policy

For General Investment, amount invested by the investors or registered users cannot be withdrawn until after 90 days of the deposit. This is to ensure there is no interruption to the investment already made by Kapitalgrow.


Emergency withdrawal can be requested at the expense of losing the expected return on amount invested.


For Specific Investment, withdrawal policy will be stated in the investment memo provided to the investors at the time of investment.

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