Since the Securities Commission Malaysia (SC) introduced the regulatory framework for Peer-to-Peer (P2P) financing in 2016, the industry has grown rapidly, becoming a multi-billion Ringgit market that plays a vital role in supporting micro, small, and medium-sized enterprises (MSMEs).

Malaysia was also the first ASEAN country to formally regulate P2P financing, introducing a comprehensive framework through the Securities Commission in 2016. This regulatory clarity has been critical in building investor trust and platform accountability.

The Recognised Market Operators (RMO) framework requires P2P platforms in Malaysia to maintain RM 5 million in paid-up capital, operate segregated trust accounts, and adopt transparent credit evaluation processes.

These standards ensure that P2P financing operates within a secure, well-governed environment that balances innovation with investor protection.

Additionally, the SC has introduced initiatives such as the Malaysia Co-Investment Fund (MyCIF), which matches public funds with private investments to support early-stage and underserved issuers, and SARANA, a financing scheme designed to support SMEs engaged in government procurement.

These initiatives have helped de-risk investments, encourage platform growth, and ensure that P2P financing serves not just businesses, but broader national development goals.

P2P financing is a digital investment platform that connects businesses (borrowers) directly with investors (lenders) via online marketplaces, bypassing traditional financial institutions.

These platforms allow MSMEs to raise capital (typically for working capital needs) while offering investors the opportunity to earn higher returns, albeit with associated risks such as credit default.

The model has democratised access to financing for businesses that might struggle to meet bank requirements, and it has opened up new asset classes for retail and institutional investors alike.

Last Updated: 23 May 2025

The State of Peer-to-Peer (P2P) Financing in Malaysia in 2024

Sustained Growth in Fundraising and Participation

The sector’s dynamism was most evident in the numbers. As of 30 September 2024, total cumulative funds raised through P2P platforms reached RM7.9 billion, marking a significant leap from RM5.96 billion at the end of 2023.

In that single year alone, P2P platforms facilitated RM2.09 billion in financing (a 32% increase compared to RM1.58 billion in 2022). This uptrend continues a robust growth pattern that has characterised the sector since its formal regulation in 2016.

Alongside capital raised, campaign activity also expanded. In 2023, the number of successful campaigns rose to 31,002, up from 24,455 in the previous year.

The platforms served a broad and growing client base, with a total of 5,355 unique issuers raising funds in 2023, and the cumulative issuer base hit 14,715 by year-end.

On the investor side, participation remained steady with 15,599 investors in 2023, bringing the cumulative number of investors to over 34,000, demonstrating growing trust in P2P as a legitimate asset class.

Meeting SME Realities with Targeted and Practical Financing

P2P financing in Malaysia primarily focuses on meeting the day-to-day funding needs of established SMEs. In fact, 98% of funds raised in 2023 were for working capital, highlighting P2P’s role as a practical financing tool rather than speculative or high-risk venture funding.

Sector-wise, the financing activities were concentrated in businesses involved in wholesale and retail trade, particularly those engaged in the repair of motor vehicles and motorcycles.

This sector alone received RM1.12 billion in funding in 2023, indicating strong demand from consumer-driven businesses.

Other significant sectors included information and communication, construction, and administrative and support services, reflecting a broadening of the financing base beyond high-growth startups or tech-focused enterprises.

Moreover, campaign sizes remained modest, consistent with the needs of micro and small enterprises. 67% of campaigns in 2023 raised RM 50,000 or less, and another 28% ranged between RM 50,000 and RM 200,000.

This illustrates how P2P financing is filling a long-standing gap in the Malaysian credit landscape. It has since been providing accessible, small-ticket loans that are often overlooked by banks due to cost and risk inefficiencies.

Who’s Borrowing?

Contrary to perceptions that P2P is mostly a playground for early-stage tech startups, the Malaysian data tells a different story. The majority of borrowers are established SMEs, with 77% of issuers operating for more than three years, including 34% with over six years of operational history.

Furthermore, 98% of the businesses funded were non-tech focused, emphasising the sector’s alignment with traditional economic activities.

This trend underscores P2P’s utility as a funding mechanism for the “missing middle”. SMEs that are too large or complex for microcredit but still lack the scale or collateral to secure traditional bank loans.

The Rise of Shariah-Compliant P2P Financing in a Dual Financial System

The SC’s commitment to inclusivity and Islamic finance has led to the growing popularity of Shariah-compliant P2P financing. As of end-2023, 15% of the total funds raised through P2P platforms were from Shariah-compliant campaigns, catering to a market segment that prioritises ethical and religious financial principles.

These offerings are supported by platforms that maintain Shariah-compliant trust accounts, employ certified Shariah advisors, and structure their investment notes in accordance with the SC’s Islamic Capital Market guidelines.

By allowing both conventional and Islamic P2P models to thrive side by side, Malaysia has become a regional benchmark for dual-finance infrastructure.

Recognised Market Operators (RMOs) for Malaysia P2P Platforms as of 2025

As of 2024, there are 16 P2P financing platform operators registered as Recognised Market Operators (RMOs) by the SC Malaysia. These are the backbone of the Malaysian P2P ecosystem, each offering distinct features and products:

Bay Smart Capital Ventures Sdn Bhd (CapBay)

CapBay, operational since 2020 under the CapBay Group, specialises in supply chain financing and invoice financing, including Shariah-compliant options. Its strength lies in leveraging technology and AI for credit scoring, with a multi-funder model and financing triggered by trade events.

Last year, the company announced that it had disbursed over RM 1 billion in P2P funding to more than 400 underserved SMEs in Malaysia. CapBay also participates in the SARANA initiative.

Bursa Malaysia RAM Capital Sdn Bhd (BR Capital)

BR Capital is a joint venture between Bursa Malaysia and RAM Holdings, created to facilitate debt fundraising for mid-tier companies, both listed and unlisted.

It offers a trusted platform leveraging its parent companies’ credibility, though detailed operational metrics (like funds disbursed or investor returns) are not publicly disclosed. It is one of the newest entrants among the P2P RMOs.

B2B Finpal Sdn Bhd

Launched in 2017, B2B Finpal offers Invoice Financing, Working Capital, and Purchase Financing, including products supported by government Co-Investment Funds (CoSIF).

The platform offers collateral-free financing up to RM 1 million to Malaysian SMEs, with returns for investors up to 12.6% per annum. As of the latest data, it has funded over RM694.7 million, and also participates in the SARANA initiative.

Capsphere Services Sdn Bhd

Capsphere markets itself as Malaysia’s first asset-based P2P financing platform, with an emphasis on community-driven financing and Shariah compliance.

It secures every loan with an asset, a measure that aims to reduce risk for investors. It targets SMEs needing working capital or expansion funding. Though it does not provide detailed funding metrics, it has established itself as a known participant in SARANA and earned recognition for its ethical financing standards.

Crowd Sense Sdn Bhd (Cofundr)

Operating the platform Cofundr, Crowd Sense connects MSMEs with investors for purposes including insurance premium financing, Takaful (Islamic insurance), invoice, and working capital financing.

It features Shariah-compliant options, minimum investments of RM 100, and potential returns of up to 15% p.a.

Crowd Sense is also a participant in the SARANA and MyCIF program and holds the Malaysia Digital (MD) status under MDEC. It has been recognised as a Partner in the Islamic Digital Ecosystem for launching the first Takaful Contribution Financing Program and for its Islamic Invoice Financing Program.

P2P Nusa Kapital Sdn Bhd (Nusa Kapital)

P2P Nusa Kapital Sdn Bhd was formerly known as Ethis Kapital Sdn Bhd.

The company specialises in Shariah-compliant and ethical financing through their Nusa Kapital platform. P2P Nusa Kapital Sdn Bhd is a Recognised Market Operator (RMO) by the Securities Commission (SC) Malaysia and participates in national initiatives like SARANA.

FBM Crowdtech Sdn Bhd (Alixco)

FBM Crowdtech Sdn Bhd has operated its digital marketplace, Alixco, since 2015, offering both equity crowdfunding (ECF) and P2P lending solutions.

The platform focuses on financing Malaysian SMEs, with particular emphasis on real estate projects. Known for its quick disbursement process (typically within 7 days) and a participant in the SARANA initiative, Alixco has built a strong presence in Penang.

microLEAP PLT

microLEAP is one of Malaysia’s few platforms focused on micro-financing, offering investment notes as small as RM50, making it highly accessible to retail investors.

It is a dual offering platform (providing both conventional and Islamic P2P financing) and caters primarily to microenterprises and small businesses, often overlooked by larger platforms.

It also gains recognition under the MyCIF co-investment scheme and SARANA, and actively promotes awareness among underserved borrowers.

While its campaigns typically range from RM 1000 to RM 50,000, the platform’s social mission and low entry barrier have attracted a steady pool of first-time investors.

Modalku Ventures Sdn Bhd (Funding Societies)

Part of the Funding Societies regional group, Modalku Ventures Sdn Bhd is one of, if not the, heavyweight in the ASEAN P2P space. The platform focuses on term loans, invoice financing, and microloans, with risk assessment systems that incorporate machine learning and alternative data.

Its campaigns often feature established SMEs with solid business track records, and the platform has gained recognition for relatively low default rates and consistent investor yields.

Modalku’s integration with its Singaporean and Indonesian counterparts allows for cross-border expertise and scalable risk management.

The platform supports both conventional and Islamic notes and contributes to Malaysia’s SARANA initiative.

Moneysave (M) Sdn Bhd

Moneysave Malaysia positions itself as a performance-based P2P platform that rewards issuers with lower financing rates based on risk reduction strategies.

It distinguishes itself through a gamified risk mitigation model, in which borrowers can lower their cost of funds by improving their business transparency and operational performance.

Moneysave offers a broad range of SME financing products, and its average investor returns are competitive, typically between 8% and 15% per annum. Its campaign structure includes detailed issuer profiling, which improves investor visibility and confidence.

The platform has also implemented Shariah-compliant financing structures, in line with national Islamic fintech ambitions. It also participates in SARANA and co-investment by MyCIF.

Peoplender Sdn Bhd (Fundaztic)

Operating under the brand Fundaztic, Peoplender Sdn Bhd is among the earliest P2P platforms registered in Malaysia. It offers an expansive catalogue of financing notes, typically unsecured and with terms ranging from 3 to 36 months.

Its campaigns are accessible to retail investors with low minimum investment thresholds.

Fundaztic employs a robust internal rating system and offers investor dashboards with historical performance data to guide investment decisions. The platform is reported to have raised RM 16 million in less than two weeks via pitchIN.

Though default rates have fluctuated, the platform actively promotes diversification to mitigate risks. Fundaztic’s early mover advantage and investor education tools make it a familiar name in Malaysia’s P2P financing narrative.

QuicKash Malaysia Sdn Bhd

QuicKash offers investment notes through a digital lending platform focused on short-term funding solutions. The company targets established SMEs with existing revenue streams and business history.

It has previously offered both conventional and Islamic financing, though it provides limited public disclosures on current campaign volumes or returns.

While not as high-profile as some of its competitors, QuicKash remains a registered RMO under the SC and contributes to market diversity, particularly for investors looking for short-term fixed-income alternatives.

Kapital DX Sdn Bhd (KLDX)

While Kapital DX (KLDX) is more often associated with digital asset tokenisation and investment note digitisation, it is also a registered RMO under the SC’s purview. KLDX is developing an end-to-end digital marketplace that supports both traditional P2P investments and asset-backed token offerings.

Pitch Platforms Sdn Bhd (PitchIN)

Originally known for its equity crowdfunding (ECF) platform PitchIN, Pitch Platforms Sdn Bhd has since expanded into P2P financing with SC approval.

The integration of its equity and P2P offerings allows PitchIN to serve businesses across different funding stages, making it a versatile capital formation platform.

DBS Solutions (M) Sdn Bhd

DBS Solutions (M) Sdn Bhd is a licensed Recognised Market Operator (RMO) under the Securities Commission Malaysia, contributing to the regulated P2P financing sector.

However, it provides limited publicly available information about its specific offerings, operational model, or focus areas.

It also does not clearly indicate whether it operates under its own brand or affiliates with another entity, which makes assessing its role and impact within the ecosystem difficult.

Community P2P Sdn Bhd

Like DBS Solutions, Community P2P Sdn Bhd is also one of the registered P2P platforms in Malaysia under the RMO, but details on its activities, funding volumes, or borrower segments are scarce.

Where Can Malaysia’s P2P Sector Head Next?

With a projected compound annual growth rate (CAGR) of 19% from 2024 to 2028, Malaysia’s alternative lending market, led by P2P financing, is poised to reach USD $1.03 billion by 2028. Increasing digital adoption, regulatory maturity, and the pressing financing needs of underserved SMEs are driving this momentum.

FAQs

What are P2P financing platforms, and how do they work in Malaysia?

P2P (peer-to-peer) financing connects businesses directly with investors via licensed online platforms, bypassing traditional banks. Borrowers (usually SMEs) raise funds for their working capital needs, while investors earn returns from interest or profit-sharing.

The Securities Commission Malaysia (SC) licenses all platforms as Recognised Market Operators (RMOs).

Are P2P platforms legal and regulated in Malaysia?

Yes. Malaysia was the first ASEAN country to regulate P2P financing in 2016. All platforms must register with the SC, and the SC requires them to follow strict rules on capital, fund segregation, transparency, and investor protection.

Who can invest in P2P platforms in Malaysia?

Anyone aged 18 and above can invest, but retail investors face a cap of RM 50,000 across all platforms and no more than RM 5,000 per issuer. Sophisticated investors have no such limits. As P2P investments do not guarantee capital, investors should diversify and understand the risks.

What are the expected returns and risks for investors?

Investor returns generally range from 5% to 15% per annum, depending on risk. However, P2P investments carry credit risk (borrower default), liquidity risk (limited early exit), and platform risk. Platforms conduct credit assessments, but they do not guarantee repayment.

Is P2P financing Shariah-compliant in Malaysia?

Yes, many platforms offer Shariah-compliant investment options. These avoid interest (riba) and uncertainty (gharar), and instead use Islamic contracts like Murabahah or Wakalah. The SC supports a dual-finance model, allowing both conventional and Islamic P2P to coexist.

Featured image: Edited by Fintech News Malaysia, based on images by Daniel_R via Freepik.