CapBay, a Malaysian multi-bank supply chain finance, and Peer-to-Peer (P2P) financing platform has acquired a 49 percent stake in Kenanga Capital Islamic Sdn Bhd (KCI), a subsidiary of Kenanga Investment Bank Berhad (KIBB). The joint venture aims to create the country’s first Islamic supply chain finance fintech.
Supply chain finance allows working capital funding using data within the supply chain processes and transactions. For instance, SME contractors and vendors who supply goods or services to large corporations, the Government, or Government-Linked Companies (GLCs) can obtain receivable financing.
Leveraging on CapBay’s strong technological expertise, this acquisition aims to transform Malaysia’s traditional factoring industry to enable SMEs to obtain financing seamlessly through a digital platform.
With the KCI acquisition, CapBay will be managing KCI through the appointment of Ang Xing Xian as the Chief Executive Officer to continue the effort of growing the Shariah-compliant business and developing the Islamic Finance market. Ang will report to Chay Wai Leong, Group Managing Director, Kenanga Investment Bank Berhad.
“We’re excited to enhance our service offering with a larger team of experts at CapBay and are now able to provide high-quality financing services to both the government and private sectors,” Chay said.
The partnership is expected to support the underserved SME market that is estimated to grow 5-fold from its current RM 20 billion.
CapBay also announced the appointment of Mohd Mokhtar Mohd Shariff as the Chairman of their holding company, Bay Group Holdings Sdn Bhd. He brings a wealth of experience and will be spearheading efforts to further enhance risk management practices in the areas of operational, fraud, and Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT).