CapBay, the Malaysian multi-bank supply chain finance and peer-to-peer financing (P2P) platform, achieved a significant milestone in its P2P model which crossed over US$220 million (RM1 billion) in funding to more than 400 underserved SMEs in Malaysia since it launched the service in March 2020.
In a press release the fintech stated that this achievement is the result of successful financing through 7,600 investment notes (some SMEs take repeat loans), underscoring CapBay's commitment to empowering SMEs and offering attractive investment opportunities for potential investors.
With a default rate of less than 0.1%, CapBay P2P sets a new standard for risk management in the alternative investment landscape. CapBay assures investors that they can rely on the platform's record of safeguarding their interests while enjoying net returns (after fees) of up to 10% p.a.
CapBay P2P's success is attributed to its advanced technology and proprietary credit model, which leverages AI (artificial intelligence) to assess an SME's repayment ability based on a comprehensive range of traditional and non-traditional data points.
Through its algorithms, CapBay enables financing for creditworthy SMEs that would otherwise struggle to secure funding from traditional sources. CapBay said it has developed an Auto Invest feature that automatically diversifies investors' portfolios, enhancing the safety of P2P investments and ensuring healthy returns.
CapBay said by providing tailored financing solutions to SMEs in various industries by understanding their respective pain points, it effectively addresses the needs of underserved SMEs across Malaysia. Since its launch in 2017 the CapBay Group, which includes its multi-bank supply chain finance platform and Islamic factoring house, has provided over US$552.2 million (RM2.5 billion) in financing, helping over 1,600 businesses through its alternative financing solutions.
CapBay's co-founder and CEO, Ang Xing Xian, expressed pride in the company's achievements. "Our remarkable growth in recent years has positioned CapBay P2P as a leader in the Malaysian P2P space. With our talented team and unwavering investor support, we will continue pushing boundaries, unlocking new opportunities, and scaling greater heights."
Recognizing the significance of alternative financing in the Malaysian economy, the government has allocated RM40 million to the Malaysia Co-Investment Fund (MyCIF) as part of Budget 2023. This demonstrates the government's support for the growth of the P2P financing industry and other alternative financing models.
CapBay was one of the key P2P platforms that helped to drive the MyCIF programme which collectively co-invested over RM 540 million, benefiting at least 3,500 MSMEs.
“Leveraging on our tech expertise, we empower business to overcome financing challenges and expansion post-pandemic. Over 70% of our financing contributes to the achievement of the United Nation Sustainable Development Goals. We are not only driving positive change but also shaping a brighter future for all stakeholders involved,” said CapBay’s Chairman Mohd Mokhtar Mohd Shariff.
In Southeast Asia, CapBay aims to bridge the financing gap for underserved SMEs and expand its operations, with offices in Singapore and Thailand this year.
CapBay is actively pursuing joint ventures, mergers, and acquisitions with key players across the value chain to establish itself as a dominant omni-channel platform offering synergistic regional supply chain financing, holistic financial services, data and technology solutions.
Source: https://www.digitalnewsasia.com/startups/capbay-p2p-financing-achieves-rm1bil-financing-milestone-malaysia