CapBay, a Malaysian multi-bank supply chain finance company, and peer-to-peer (P2P) financing platform, announced that it has secured US$20 million in a Series A round from existing investor KK Fund, a Singapore-based VC firm.
Several angel investors with expertise in finance, technology, and growing startup companies, also participated in the round.
With the fresh capital, the fintech startup will further strengthen its technological and funding capabilities. This will enable more efficient financing and expand its market to reach a wide range of investors and underserved SMEs, said the firm in a statement.
Founded in 2016, CapBay aims to help small and medium-sized enterprises (SMEs) grow and unlock the cashflow trapped in their supply chain by providing financing solutions.
Formerly known as CapitalBay, the company launched its P2P services in March 2020 and claims to have funded 100 million Malaysian ringgit (US$24.7 million) across 500 investment notes. The firm also says it has facilitated more than 800 million Malaysian ringgit (US$197.6 million) across 10,000 transactions covering SMEs.
According to CapBay, it is “the first and only fintech company” to have partnered with Telekom Malaysia for the telecom giant’s vendor financing program known as Perintis. Telekom Malaysia had partnered with 14 financial institutions – a majority of which were banks – to launch the program. The partnership allowed P2P investors to invest alongside institutional investors in an asset class backed by the government and corporate receivables.
CapBay also recently entered a joint venture with financial services company Kenanga to create Malaysia’s “first” Islamic supply chain finance fintech firm.
CapBay has confirmed that it has acquired a 49% stake in Kenanga Capital Islamic in order to establish an Islamic Fintech joint initiative.
Previously, CapBay raised US$477,000 in a seed round led by KK Fund in 2017.