KUALA LUMPUR: CapBay, a leading fintech startup in Malaysia, has achieved a remarkable milestone by providing over RM1 billion in funding to more than 400 underserved small and medium enterprises (SMEs). This achievement has been made possible through successful financing via 7,600 investment notes, showcasing the company’s unwavering commitment to empowering SMEs and offering attractive investment opportunities to potential investors.
CapBay’s reputation as a multi-bank supply chain finance (SCF) and peer-to-peer financing (P2P) platform has been well-established, making it one of the most prominent platforms in the country. Notably, the platform boasts an incredibly low default rate of less than 0.1%, setting a new standard for risk management in the alternative investment landscape.
Ang Xing Xian, the co-founder and chief executive officer of CapBay, emphasized that investors can confidently rely on the platform’s track record in safeguarding their interests, while enjoying net returns of up to 10% per annum. This exceptional performance challenges the misconception that alternative investments are excessively risky for retail investors.
The success of CapBay can be attributed to its advanced technology and proprietary credit model, which utilizes artificial intelligence (AI) to assess an SME’s repayment ability based on a comprehensive range of traditional and non-traditional data points. By employing innovative algorithms, the platform enables financing for creditworthy SMEs that might otherwise struggle to secure funding from traditional sources.
Ang highlighted that CapBay has developed an auto-invest feature that automatically diversifies investors’ portfolios, enhancing the safety of P2P investments and ensuring favorable returns. Furthermore, the platform offers tailored financing solutions to SMEs in various industries, addressing the specific needs of underserved SMEs across Malaysia.
Looking to the future, CapBay aims to become a technology enabler within Southeast Asia, bridging the financing gap for underserved SMEs. To achieve this, the company has expanded its operations with offices established in Singapore and Thailand this year. Additionally, CapBay is actively pursuing joint ventures, mergers, and acquisitions with key players across the value chain, aiming to be a dominant omni-channel platform.
CapBay chairman Datuk Seri Mohd Mokhtar Mohd Shariff revealed that the group, encompassing its multi-bank SCF platform and Islamic factoring house, has provided over RM2.5 billion in financing. The company has successfully assisted over 1,600 businesses through its alternative financing solutions and technology-driven approaches, simplifying and expediting access to funds, ultimately making the financing process more accessible and efficient.
The Malaysian government, under Budget 2023, has allocated RM40 million to the Malaysia Co-Investment Fund (MyCIF) to support the growth of the P2P financing industry and other alternative financing models in the country. CapBay has played a key role in driving the MyCIF programme, collectively co-investing over RM540 million, which has benefited at least 3,500 MSMEs.
CapBay takes pride in its tech expertise, which has empowered businesses to overcome financing challenges and expand post-pandemic. Remarkably, over 70% of the financing provided by CapBay contributes to the achievement of the United Nations Sustainable Development Goals, signifying the company’s commitment to driving positive change and shaping a brighter future for all stakeholders involved.
Since 2017, CapBay Group has financed more than 22,000 transactions worth over RM2.3 billion, benefiting over 1,600 SMEs in Malaysia.
From: CapBay P2P financing achieves RM1bil financing milestone | The Star