P2P financing rose to RM1.58bil in 2022


KUALA LUMPUR: Total funds raised via peer-to-peer (P2P) financing rose to RM1.58 billion in 2022 from RM1.14 billion in 2021, said the Securities Commission (SC).

The total number of campaigns increased 71% to 24,455 against 14,301 in 2021, the SC said in its Annual Report 2022 released today.

At end-2022, the total number of issuers stood at 6,913 with an 88 per cent increase to 3,732 issuers against 1,886 in 2021, the SC report said.

"Fundraising was successfully carried out via 24,455 campaigns. The majority of issuers in 2022 were based in Selangor and Kuala Lumpur at 38 per cent and 16 per cent, respectively, while technology-focused issuers formed two per cent of total issuers.

"Campaign sizes in 2022 continued to be smaller fundraising amounts, with 70 per cent of raising RM50,000 and below,” it said.

The regulator said that the wholesale and retail trade sector involving motor vehicle and motorcycle repairs continued to receive the most funds in 2022, raising RM927.72 million.

Total funds raised since the inception of P2P financing stood at RM3.87 billion via 54,791 campaigns with nine per cent via Shariah-compliant campaigns.

Total investors reached more than 32,000 with investor participation surpassing 16,000 in 2022 versus more than 15,000 in 2021, with 24 per cent of them being first time investors.

The regulator said the bulk of the campaigns continued to trend towards shorter-term financing last year, with 69 per cent of investment notes having tenures of three months or less. The purpose of fundraising continued to be predominantly for working capital. - Bernama

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