Fundaztic Partners With Lazada For Zero-Interest Financing for E-commerce BusinessesAugust 18, 2020
Fundaztic, a peer-to-peer financing (P2P) platform, partners with Lazada to deliver an interest-free financing program for Lazada sellers under the government’s ePENJANA initiative for Micro, Small and Medium Enterprises (‘MSME’).
The initiative aims to support an estimated 30,000 unique local MSMEs to digitalise amidst the disruption to businesses caused by the ongoing COVID-19 pandemic.
MSMEs are especially vulnerable during these difficult times. In particular, traditional businesses might find it challenging to begin the digital transformation process without sufficient support. Hence, the interest-free financing programme aims to alleviate some pressure off the MSMEs in this regard.
“Being a fully digitalised platform ourselves, we can understand the difficulties and importance of going digital, and we feel strongly about enabling more MSMEs to undergo a similar transformation in order to improve their accessibility and optimise their processes,”
says Calvin Foo, Acting Chief Executive Officer of Fundaztic.
Fundaztic’s platform primarily finance MSMEs; and as of 30th June 2020, the number of unique MSMEs served via the platform is said to represent 50% of the total P2P industry. Fundaztic.com allows businesses to apply for funding anytime, anywhere through the use of any device connected to the internet.
“Lazada is focused on boosting our local MSMEs growth with the right tools, support and financing to succeed. With one-third of the population shopping online through our platform every month, we are confident that our continued investment into Malaysia’s small business community will augment Malaysia’s digital ecosystem and further bolster the recovery of the nation’s economy.”
said Leo Chow, Chief Executive Officer of Lazada Malaysia.
From 1 July 2020 to 30 September 2020, the Micro and SME E-commerce campaign on Lazada features a series of customised incentives which includes interest-free financing support for successful MSME loan applicants.
Eligible existing and new merchants will benefit from a full subsidy of their online startup cost, which includes creation of store and product listings, free shipping and delivery services, training and workshops as well as free access to Lazada’s digital and advertising solutions, allowing them to quickly sell online and diversify their revenue streams.
The initiative also aims to support the differently-abled communities through these trying times in an effort to help them develop a sustainable income stream online.
In July 2019, another P2P financing platform, Funding Societies also offered financing to e-commerce merchants in collaboration with Lazada.