KUALA LUMPUR: The peer-to-peer (P2P) financing industry in Malaysia has successfully raised close to RM377 million as of June this year, benefiting over 1,100 small and medium enterprises (SMEs), according to Funding Societies Malaysia.
In a statement today, Funding Societies said although P2P financing was only introduced by the Securities Commission Malaysia in 2016, the alternative financing platform continued to gain upward momentum due to its advantages such as easy application process, fast processing time, and collateral-free documentation requirement.
"The P2P platform is now becoming an ideal avenue for SMEs in need of short-term financing to maintain adequate cash flow and fuel their business growth," it said.
In addition, Funding Societies said P2P financing platforms also partnered with corporates and financial institutions to find mutually beneficial ways to serve SMEs and investors.
"With customised financing tenures and repayment structures, P2P financing products are tailored to the specific requirements of SMEs," it said.
Funding Societies, which is the first and largest P2P financing platform in Malaysia, said it had achieved notable milestones thus far, including being the first P2P financing platform to raise a total of RM128 million in Series A and Series B funding.
"This was led by leading venture capital companies such as Sequoia India and SoftBank Ventures Asia, all with the objective to serve and foster the growth of underserved SMEs," it said.
The majority of SMEs supported by Funding Societies come from key sectors such as wholesale, retail trade and manufacturing, thereby reflecting the broad appeal of P2P financing as a key source of financing for SMEs, it added. - Bernama
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