CapBay, a Malaysian multi-bank supply chain finance and peer-to-peer financing platform, announced today it has raised US$20 million in Series A round.
The fresh investment comes from returning backer Singapore-based KK Fund and several Malaysian angel investors with expertise in finance, technology and growing startup companies.
As per a press note, CapBay aims to use the funds to further strengthen its technological and funding capabilities. It will enable more efficient financing and market expansion in order to reach a wider range of investors and underserved small and medium-sized enterprises (SMEs), it claimed.
Launched in 2016, CapBay uses existing trade data and relationships to facilitate inclusive business financing. Through its propriety credit-decisioning model, businesses can obtain short-term financing while banks and investors can participate in financing deals.
CapBay said it has funded MYR 100 million (US$24.7 million) across 500 investment notes on its P2P platform since its launch in March 2020. Its supply chain finance arm has facilitated more than MYR 800 million (US$198 million) across 10,000 transactions covering SMEs.
CapBay has expanded investment opportunities for P2P investors on its platform through various strategic partnerships.
The Malaysian firm was selected to be part of national telco Telekom Malaysia’s Vendor Financing Programme in September 2020. This allowed P2P investors on Capbay’s platform to invest alongside institutional investors in a safer asset class backed by the government and corporate receivables.
CapBay also recently entered a joint venture with Kenanga Investment Bank by acquiring a 49 per cent stake in Kenanga Capital Islamic to create Malaysia’s first Islamic supply chain finance fintech.