KUALA LUMPUR: CapBay has achieved a significant milestone by providing over RM1bil in funding to more than 400 underserved small and medium enterprises (SMEs).
This achievement is the result of successful financing through 7,600 investment notes, underscoring the company's commitment to empowering SMEs and offering attractive investment opportunities for potential investors.
The fintech startup is one of the leading multi-bank supply chain finance (SCF) and peer-to-peer financing (P2P) platforms in the country.
With a default rate of less than 0.1%, CapBay P2P sets a new standard for risk management in the alternative investment landscape.
Its co-founder and chief executive officer Ang Xing Xian said investors could rely on the platform's record of safeguarding their interests while enjoying net returns of up to 10% per annum.
"This exceptional performance highlights our dedication to challenging the perception that alternative investments are too risky for the average retail investor.
"Our success is attributed to our 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.
"By embracing innovative algorithms, we enable financing for creditworthy SMEs that would otherwise struggle to secure funding from traditional sources," he said when met during a programme to share the achievements with investors and clients at the Pullman Hotel Bangsar on Thursday.
Ang said they have also developed an auto-invest feature that automatically diversifies investors' portfolios in order to enhance the safety of P2P investments and ensure good returns.
"In addition, we offer tailored financing solutions to SMEs in various industries.
"By understanding each industry's requirements, the needs of underserved SMEs across Malaysia could be addressed," he said.
Ang also said to fulfill its vision of becoming a technology enabler within Southeast Asia, CapBay aims to bridge the financing gap for underserved SMEs and expand its operations, having set up offices in Singapore and Thailand this year.
"We are in the midst of actively pursuing joint ventures, mergers and acquisitions with key players across the value chain to be a dominant omni-channel platform," he said.
Separately, CapBay chairman Datuk Seri Mohd Mokhtar Mohd Shariff said the group, which includes its multi-bank SCF platform and Islamic factoring house, has provided over RM2.5bil in financing.
"So far, we have assisted over 1,600 businesses through our alternative financing solutions and technology-driven solutions.
"By simplifying and expediting access to funds, CapBay has revolutionised the financing process, making it more accessible and efficient," he said.
Under Budget 2023, the government has allocated RM40mil to the Malaysia Co-Investment Fund (MyCIF) in support for the growth of the P2P financing industry and other alternative financing models in the country.
CapBay is one of the key P2P platforms that assisted to drive the MyCIF programme which has collectively co-invested over RM540mil, benefitting at least 3,500 MSMEs.
“Leveraging on our tech expertise, we have empowered businesses to overcome financing challenges and expand 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,” Mohd Mokhtar added.
Since 2017, CapBay Group has financed more than 22,000 transactions worth over RM2.3bil, serving over 1,600 SMEs.