CapBay has reached a remarkable milestone by disbursing over RM1 billion in funding to more than 400 underserved SMEs, demonstrating its dedication to empowering businesses and offering safe investment options. With a default rate below 0.1%, CapBay’s advanced technology and AI-driven credit model have enabled financing for creditworthy SMEs, challenging the perception of alternative investments being high-risk.
14 July 2023 – CapBay, a leading multi-bank supply chain finance (SCF) and peer-to-peer financing (P2P) platform, has achieved a significant milestone by providing more than RM1 billion in funding to over 400 underserved small and medium enterprises (SMEs). This achievement highlights CapBay’s commitment to supporting the growth and financial needs of SMEs, while also offering attractive investment opportunities for potential investors.
CapBay’s success is attributed to its successful financing through 7,600 investment notes, which showcase the platform’s ability to connect SMEs in need of funds with willing investors. As one of Malaysia’s prominent fintech startups, CapBay has established itself as a key player in the alternative financing landscape.
With a default rate of less than 0.1%, CapBay’s P2P platform sets a new standard for risk management, assuring investors of the platform’s dedication to safeguarding their interests. Moreover, investors can enjoy net returns of up to 10% per annum, making it an attractive investment avenue.
CapBay’s co-founder and CEO, Ang Xing Xian, expressed his confidence in the platform’s ability to mitigate risks and generate substantial returns. He emphasized CapBay’s commitment to dispelling the notion that alternative investments are too risky for retail investors, showcasing their exceptional performance as evidence of their dedication to investor protection.
CapBay’s success in supporting underserved SMEs can be attributed to its advanced technology and proprietary credit model, which leverages artificial intelligence (AI) to assess an SME’s repayment ability using 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.
The platform has also introduced an auto-invest feature that automatically diversifies investors’ portfolios, enhancing the safety of P2P investments while ensuring good returns. Furthermore, CapBay offers tailored financing solutions for SMEs across various industries, addressing the specific needs of underserved businesses throughout Malaysia.
In line with its vision of becoming a technology enabler in Southeast Asia, CapBay aims to bridge the financing gap for underserved SMEs and expand its operations. This year, CapBay has already set up offices in Singapore and Thailand, demonstrating its commitment to regional growth. Additionally, the company is actively pursuing joint ventures, mergers, and acquisitions with key players across the value chain to establish itself as a dominant omni-channel platform.
CapBay’s chairman, Datuk Seri Mohd Mokhtar Mohd Shariff, shared that the group, which includes its multi-bank SCF platform and Islamic factoring house, has provided over RM2.5 billion in financing to date. By simplifying and expediting access to funds, CapBay has revolutionized the financing process, making it more accessible and efficient for businesses.
The Malaysian government has allocated RM40 million to the Malaysia Co-Investment Fund (MyCIF) under Budget 2023, aiming to support the growth of the P2P financing industry and other alternative financing models in the country. CapBay is one of the key P2P platforms driving the MyCIF program, which has collectively co-invested over RM540 million, benefiting at least 3,500 micro, small, and medium enterprises (MSMEs).
Leveraging its tech expertise, CapBay has empowered businesses to overcome financing challenges and expand post-pandemic. With over 70% of its financing contributing to the United Nations Sustainable Development Goals, the company is not only driving positive change but also shaping a brighter future for all stakeholders involved.
Since its inception in 2017, CapBay Group has financed more than 22,000 transactions, exceeding RM2.3 billion in value and serving over 1,600 SMEs. Through its unwavering commitment to SMEs and innovative financial solutions, CapBay continues to play a pivotal role in the growth and development of Malaysia’s business ecosystem. – source: Ther Star
