P2P Lending Player Fundaztic to Raise RM3 Million Through pitchINby Fintech News Malaysia October 11, 2018
Fundaztic announced that they will be raising RM 3 Million via equity crowdfunding platform, pitchIN — which is the maximum sum permitted by Securities Commissions Malaysia to be raised on an equity crowdfunding platform.
This is perhaps the first time in the region that a P2P lending player will be raising funds through a crowdfunding platform. The campaign will go live on pitchIN on 17th October 2018.
Why is a P2P Platform raising funds on an ECF platform?
Kristine Ng, CEO, Fundaztic, expressed that while they could have easily secured funding through VCs and PEs, they have instead opted for ECF to allow their customers to also be shareholders to enable them share Fundaztic’s growth journey.
Fundaztic also believes that by involving customers in their journey will convert them into brand advocates and drive the P2P platform to new heights.
This move also signals that players within the alternative funding ecosystem are confident enough in the system to also raise funds through the same methods they’ve been preaching.
Both parties share the sentiment that by having a P2P lending platform raise funds on an ECF platform, awareness in the market will be heightened.
It will also provide opportunity for both platforms to expand their user base, as investors who are keen on this note will need be registered on both Fundaztic and pitchIN
What will the funds be used for?
The P2P lending platform shared that the funds will be used to grow their staff strength in both the front office and back office in order to increase penetration in the SME markets while maintaining the quality of notes raised.
Fundaztic also indicated that the funds will be used to develop their own secondary market to allow for investors to trade notes before its maturity to enable them to cash out earlier if needed.
Kristine also expressed their ambition to have Fundaztic to be a public listed company in the near future.