Grocery platform raises RM6.18mil from ECF


No frills: A Baloy supermarket in Petaling Jaya. The company leverages the customer-to-manufacturer model to lower the cost on essential goods.

BALOY, an e-commerce platform made for grocery shopping with an online-to-offline (O2O) and consumer-to-market (C2M) business model, has raised more than RM6.18mil in one of the largest equity crowdfunding (ECF) campaigns in Malaysia.

Co-founder and chief executive officer Yen Chee Yung says the campaign also drew participation from investors abroad.

“Our campaign with Ethis Malaysia has successfully raised one of the largest ECF amounts in Malaysia, with the participation of not only local but also global investors hailing from close to 20 countries.

“This is our effort towards capturing foreign direct investments for Malaysia in a small but meaningful way. Baloy is indeed pleased to have raised the capital required to grow our business to the next level.”

Baloy’s business is targeted at the B40 segment, which was the hardest hit by the pandemic. Yen notes that this group of consumers requires an innovative approach to ensure that their needs are met.

“This means a lot to us, and we are very grateful to have investors who are interested in our business model and who are confident of our success and potential. This is an important step in the growth story of the company,” he adds.

Since 2019, Baloy has leveraged the customer-to-manufacturer model to help lower expenses on essential goods, especially for B40 households. By combining both the C2M and O2O concepts, Yen says Baloy can effectively differentiate itself in the local retail space by offering the lowest price possible.

It operates on a subscription-based model for members and also has physical stores. This also enables small traders and SMEs to reach consumers directly and assist them towards recovery.

Yen highlights that Baloy ultimately aims to develop a healthy purchasing ecosystem to enhance and advance Malaysia’s fast-moving consumer goods industry and subsequently, the nation’s economy.

Meanwhile, Ethis Malaysia CEO Wan Mohd Dazriq Wan Zulkiflee says the halal retail and food distribution sector would remain an important component of the syariah-compliant economy which could see considerable growth post-pandemic.

“Ethis will continue to make available sustainable and innovative opportunities to grow value for institutional and retail investors alike, especially with investments that bring social benefit such as Baloy’s, which goes hand in hand with Ethis’ ‘circulate good’ ambition in the real economy.

“The fact that the Ethis platform was able to facilitate syariah-compliant retail investors from close to 20 different countries shows that we have matured as a conduit for investment to flow into Malaysia.

“We hope that this global approach to raising the much-needed capital for Malaysian companies is utilised as the primary means of funding innovative business ideas for local entrepreneurs and SMEs looking to expand as the economy starts to grow post-pandemic,” he said.

This also aligns with the aspiration of the 12th Malaysia Plan to support micro-enterprises and SMEs as well as entrepreneurs via fintech and crowdfunding capabilities, he added.

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