CapBay secures US$20 million Series A with returning backer KK Fund
By Digital News Asia January 25, 2021
- Aims to strengthen both funding and technological capabilities
- Several Malaysian angel investors participate in current round
Bay Group Holdings Sdn Bhd (CapBay), a fast-growing Malaysian multi-bank supply chain finance and peer-to-peer financing (P2P) platform, has raised US$20 million (RM81 million) in its Series A round.
Existing investor KK Fund, a Singapore-based venture capital firm that invests in startups across Southeast Asia participated in the current round as well.
Malaysian investors include several angel investors with expertise in finance, technology and growing startups.
The startup, founded in early 2016, had raised a US$500,000 seed round in Sept 2017.
CapBay aims to use the funds to further strengthen its technological and funding capabilities. This will enable more efficient financing and market expansion in order to reach a wide range of investors and underserved small and medium-sized enterprises (SMEs).
CapBay’s business performance has laid the foundation for successful fundraising. In December 2020, CapBay achieved a key milestone by funding US$24.7 million (RM100 million) across 500 investment notes on its P2P platform since its launch in March 2020, being the fastest fintech to hit RM100 million in P2P financing. This achievement is part of CapBay Group’s strong track record of providing supply chain finance, having facilitated more than RM800 million across 10,000 transactions covering SMEs.
[RM1 = US$0.248]
The company also expanded investment opportunities for P2P Investors on its platform through its strategic partnerships with top institutions. CapBay became the first and only fintech company selected to be part of Telekom Malaysia Bhd’s (TM) Vendor Financing Programme known as PERINTIS in September 2020. The strategic partnerships between top institutions and CapBay allowed P2P investors to invest alongside institutional investors in a safer asset class backed by the government and corporate receivables.
Recently, CapBay entered a joint venture with brokerage house Kenanga Investment Bank Bhd to create Malaysia’s first Islamic supply chain finance fintech. CapBay invests into developing the Shariah-compliant supply chain finance market through the Kenanga Capital Islamic Sdn Bhd (KCI) acquisition. Ang Xing Xian (pic), CapBay cofounder and CEO was appointed as CEO of KCI to grow the business and integrate with CapBay’s technology.