CapBay, a Malaysian multi-bank supply chain finance and peer-to-peer financing (P2P) platform, has secured RM30 million investment from Kenanga Capital Islamic (KCI), a subsidiary of Kenanga Investment Bank Berhad (KIBB).
The investment is a step forward to growing CapBay’s supply chain finance arm, CapBay Islamic, which is approved for Shariah-compliant P2P financing by the Securities Commission Malaysia (SC).
This will now enable small and mid-size enterprises (SMEs) to obtain flexible and cost-effective financing seamlessly through a digital platform.
With this latest initiative, CapBay’s P2P investors can now expand and diversify their investment portfolio by investing into Islamic financing notes.
These notes are predominantly backed by government and Government-Linked Companies (GLC) receivables.
According to CapBay, it differentiates itself by offering lower risk investment notes in a bid to enhance investor trust and confidence especially during these times of uncertainty.
They recently launched a guaranteed investment programme which is Malaysia’s first guaranteed P2P investment backed by a reserve fund.
CapBay’s P2P platform has reportedly maintained 0% default since its launch in March 2020.
Last year, CapBay had formed a partnership with KIBB through the acquisition of a 49% stake in its subsidiary, KCI to form an Islamic supply chain finance fintech.
“CapBay is thrilled to receive the support from Kenanga and for sharing the same spirit of helping SMEs thrive especially during this time.
The injection of funds will help to accelerate the growth of Malaysian SMEs and with the launch of our Islamic receivables and working capital financing solutions, we believe that this will add another dimension to our efforts in supporting the SMEs in the country”,
said Dato’ Sri Mohd Mokhtar Mohd Shariff, Chairman of CapBay.
“CapBay has been a great partner and with this investment, we hope that we can bring a positive impact to the SME community in Malaysia.
We have been collaborating with CapBay to develop an Islamic fintech to serve a wide range of SMEs through a digital platform that enables a faster and more convenient process,”
said Datuk Chay Wai Leong, Group Managing Director of KIBB.
