500 Startups invests in MyCash Online, gives ECF investors 44.2% returns
By Digital News Asia October 18, 2019
- Majority of ECF investors chose to not take up the offer and remain as shareholders
- MyCash Online used the funding raised during the ECF round in 2017 to expand nationwide
A GROUP of MyCash Online investors have recently accepted a buyout offer for their shares from VC company 500 Startups. The offer, which gave them 44.2% returns over two years since the ECF deal, was made alongside an investment by 500 Startups into MYCash Online.
MyCash Online is a fintech startup that provides an online marketplace for unbanked migrants to purchase products and services online without any bank account or credit card. Through the MyCash Platform, migrant workers can top up their mobile phone, pay utility bills, purchase e-commerce products, bus tickets, air tickets and gift voucher.
pitchIN chief executive officer Sam Shafie said, “pitchIN is very pleased to deliver its first meaningful exit to ECF investors. The nearly 45% returns that exiting ECF investors obtained represents excellent ROI over two years.
“Congratulations too, to MyCash Online on their recent funding and expansion into markets outside Malaysia. It is a mark of confidence for MyCash Online that the majority of ECF investors chose to not take up the offer and remain as shareholders.”
MyCash Online chief executive officer Mehedi Hassan is pleased that his startup was able to realise gains for ECF investors.
“MyCash Online used the funding raised during our ECF round in 2017 to expand nationwide and establish footholds in Singapore and Australia. Our solid growth since then has placed us in a position where we are now ready to take on the world, with the funding from 500 Startups.
“To the ECF investors who have chosen to exit, I am pleased that we were able to keep our promise to deliver good ROI to investors. I assure the ECF investors who remain that we will work hard to deliver returns for them too in the future.”
pitchIN chief strategy officer Kashminder Singh said, “Since 2016, pitchIN has focused on hosting great Malaysian companies with high growth potential. Congratulations to MyCash Online for becoming the first of pitchIN’s ECF issuers to deliver excellent returns. pitchIN is Malaysia’s leading ECF platform and we have assisted 40 companies to raise RM45 million in three years. We are confident that more exits are coming soon.”
pitchIN hosts highly vetted investment deals on its equity crowdfunding platform. Positioned as long-term investments, investors get shares in the companies they invest in. Equity crowdfunding typically gives investors access to fast growing companies at the stage when they offer the highest potential for future growth.