CapBay, the Malaysian Multi-Bank Supply Chain Finance and Peer-to-Peer Financing (P2P) platform, has achieved a significant milestone by providing over RM 1 billion in funding to more than 400 underserved SMEs in Malaysia. This achievement is the result of successful financing through 7,600 investment notes, underscoring CapBay’s commitment to empowering SMEs and offering attractive investment opportunities for potential investors.
With a default rate of less than 0.1%, CapBay P2P sets a new standard for risk management in the alternative investment landscape. Investors can rely on the platform’s record of safeguarding their interests while enjoying net returns (after fees) of up to 10% p.a. This exceptional performance highlights CapBay’s dedication to challenging the perception that alternative investments are too risky for the average retail investor.
CapBay P2P’s success is attributed to its 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, CapBay enables financing for creditworthy SMEs that would otherwise struggle to secure funding from traditional sources. Moreover, CapBay’s has developed an Auto Invest feature that automatically diversifies investors’ portfolios, enhancing the safety of P2P investments and ensuring healthy returns.
As an award-winning supply chain financing (SCF) specialist, CapBay offers tailored financing solutions to SMEs in various industries. By deeply understanding each industry’s pain points and requirements, CapBay effectively addresses the needs of underserved SMEs across Malaysia. The CapBay Group, which includes its Multi-Bank SCF platform and Islamic factoring house, has provided over RM2.5 billion in financing, helping over 1,600 businesses through its alternative financing solutions.
The journey to this remarkable milestone has been marked by consistent growth and a commitment to technology-driven solutions. CapBay’s accelerated funding process, improved transparency, and enhanced efficiency have instilled confidence in both investors and businesses. By simplifying and expediting access to funds, CapBay has revolutionized the financing process, making it more accessible and efficient.
CapBay’s Co-founder and CEO, Ang Xing Xian, expressed his pride in the company’s achievements, stating, “Our remarkable growth in recent years has positioned CapBay P2P as a leader in the Malaysian P2P space. Together with our talented team and unwavering investor support, we will continue pushing boundaries, unlocking new opportunities, and scaling greater heights.”
Recognizing the significance of alternative financing in the Malaysian economy, the government has allocated RM40 million to the Malaysia Co-Investment Fund (MyCIF) as part of Budget 2023. This commitment demonstrates the government’s support for the growth of the P2P financing industry and other alternative financing models in the country. CapBay was one of the key P2P platforms that helped to drive the MyCIF programme which has collectively co-invested over RM 540 million, benefiting at least 3,500 MSMEs.
“Leveraging on our tech expertise, we have empowered businesses to overcome financing challenges and expand in a post-pandemic world. 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,” said CapBay’s Chairman Datuk Sri Mohd Mokhtar Mohd Shariff.
CapBay’s exceptional performance and robust growth indicate that the P2P financing industry in Malaysia will continue its upward trajectory. As demand for alternative financing options increases and government initiatives drive industry growth, CapBay is poised to unlock more potential within the region.
To fulfil its vision of becoming a technology enabler within Southeast Asia, CapBay aims to bridge the financing gap for underserved SMEs and expand its operations across Southeast Asia, having set up offices in Singapore and Thailand this year. Additionally, CapBay is actively pursuing joint ventures, mergers, and acquisitions with key players across the value chain to establish itself as a dominant omni-channel platform offering synergistic regional supply chain financing, holistic financial services, and data and technology solutions.
