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Category: CapBay News/Press

CapBay News/Press

​​CapBay Exchanging Memorandum of Understanding with Sleek EV and AccRevo

  • CapBay offers a dealer financing program to support Sleek EV’s goal of selling 6,000 electric vehicles this year.
  • AccRevo joins forces with CapBay to develop innovative financial solutions for SMEs, enhancing cash flow and financial planning for sustainable growth. 
  • The MoUs mark a significant milestone in enhancing cross-border cooperation and advancing financial services for SMEs in Thailand

Bangkok, Thailand, 6 August 2024 – Bay Commerce (Thailand) Co., Ltd., a wholly-owned subsidiary of Bay Group Holdings Sdn Bhd (CapBay), today exchanged Memorandums of Understanding (MoUs) with Sleek EV and AccRevo during the Malaysia Digital Economy Corporation (MDEC)’s DEX Connex Thailand 2024 in Bangkok. The MoU with Sleek EV outlines the intentions and commitments of both parties to collaborate and support each other’s business growth and sustainability goals. Similarly, the MoU with AccRevo focuses on joint efforts to enhance business growth and financial service innovation.

Sleek EV is a prominent provider of innovative and sustainable electric vehicles in Southeast Asia. The MoU will enable CapBay to offer a curated dealer financing program designed to improve cash flow for Sleek EV’s authorised distributors. This initiative aims to make it more attractive for potential distributors to join Sleek EV’s network, thereby supporting Sleek EV’s goal of selling 6,000 units of electric vehicles this year.

Conversely, the collaboration between CapBay and AccRevo, a company dedicated to revolutionising accounting practices through innovative technology and digital solutions, will see both companies leverage their expertise to develop customised financial solutions for small and medium-sized enterprises (SMEs), aimed at boosting cash flow, refining financial planning, and delivering crucial resources to support sustainable sector growth.

“We are incredibly excited to forge these strategic alliances with Sleek EV and AccRevo. The MoUs mark a significant milestone in enhancing cross-border cooperation and advancing financial services for SMEs in Thailand.,” said Ang Xing Xian, Co-founder and Chief Executive Officer of CapBay. “Through these partnerships, we aim to empower local businesses to create a meaningful impact on both the business world and sustainable development.”

Mr. Zhang Quan Ong, Co-Founder of Sleek EV commented, “Partnering with CapBay not only strengthens our commitment to delivering cutting-edge electric motorcycles and efficient battery fast charging infrastructure but also supports our vision of a greener, more sustainable future.” 

Rachit Chairat, Chief Executive Officer of AccRevo expressed enthusiasm for the partnership, stating, “This MoU reflects our shared vision of transforming financial management for SMEs. We believe that by working together, we can develop innovative solutions that benefit our stakeholders and contribute to the growth and sustainability of SMEs. We look forward to a fruitful collaboration with CapBay.”

Ts. Mahadhir Aziz, Chief Executive Officer of MDEC, said, “The DEX Connex programme exemplifies our dedication to support cross-border partnerships and advance digital innovation. We are proud to see CapBay, a participant of the Founders Centre of Excellence (FOX) Programme under the national strategic initiative, Malaysia Digital (MD), actively engage in these meaningful collaborations. The MoU exchange with Sleek EV and AccRevo not only enhances regional cooperation but also highlights CapBay’s commitment to driving sustainable development and financial innovation. We look forward to seeing the positive impact these partnerships will have on CapBay’s growth and we are confident they will continue to scale to greater heights.”

For more information, please visit CapBay’s website or follow us on Facebook and Instagram.

From Left to Right: Jasmine Lau (Director of CapBay), YB Tuan Syed Ibrahim Syed Noh (Chairman of MDEC), Mr. Zhang Quan Ong (Co-Founder of Sleek EV).

From Left to Right: Jasmine Lau (Director of CapBay), YB Tuan Syed Ibrahim Syed Noh (Chairman of MDEC), Mr. Rachit Chairat (Chief Executive Officer of AccRevo).

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CapBay News/Press

​​CapBay Partners with Sleek EV to Drive Sustainable Growth and Innovation

From Left to Right: Darrel Ang (Co-founder of CapBay), Murali Samy (Audit Partner of Deloitte)

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CapBay News/Press

Triple Triumph: CapBay Clinches Coveted Awards In Business, Technology Excellence And High-Growth Company

From Left to Right: Darrel Ang (Co-founder of CapBay), Murali Samy (Audit Partner of Deloitte)

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CapBay News/Press

Budget 2022 boosts Peer-to-peer financing (P2P) industry

  • RM80 million is allocated for the Malaysia Co-investment Fund (MyCIF) and an additional RM100 million is allocated for investments by Bank Pembangunan Malaysia Berhad (BPMB) to support alternative financing

  • Introduction of 100% stamp duty exemption on any successful financing agreement executed on P2P financing platform for the next 5 years

KUALA LUMPUR, 2 November 2021 – Peer-to-Peer (P2P) Financing under the supervision of the Securities Commission Malaysia (SC) has generated over RM 1 billion of financing to SMEs since the start of the pandemic. According to SC chairman Datuk Syed Zaid Albar, fintech could be a key enabler in re-building Malaysia’s economy as the country recovers from the pandemic.

The Budget 2022 that was announced by Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz was the largest budget to date to spur post-COVID recovery with a focus on supporting the growth of Micro, Small and Medium Enterprises (MSMEs). The allocation of RM 80 million to the Malaysia Co-investment Fund (MyCIF) was an increase from RM 50 million when it was first introduced in 2019 with the addition of RM 100 million from Bank Pembangunan Malaysia Berhad (BPMB). MyCIF is a co-investment alongside private investors via P2P and Equity Crowdfunding (ECF) platforms that has helped create additional funding sources for MSMEs and spur investor confidence for P2P and ECF investments.

In addition, the government has introduced a 100% stamp duty exemption for successful financing agreements on any registered P2P platform with SC for the next 5 years effective from 1 January 2022 to 31 December 2026. This will reduce financing costs and encourage MSME adoption in P2P financing. Currently, the stamp duty rate is between 0.05% to 0.50%

CapBay’s Co-founder and CEO, Ang Xing Xian, lauded the announcement of the Budget 2022 that focuses on supporting MSMEs and the contribution of ECF and P2P fintechs to the Malaysian economy..

 

Ang Xing Xian, Co-founder and CEO of CapBay

“The P2P financing industry has proven to be pivotal in economic recoveries in other developed countries. The additional MyCIF allocation and stamp duty exemption will help make P2P financing an affordable channel for MSMEs to raise funds during this economic recovery period. We expect adoption in this space to grow exponentially due to additional support and initiatives from the government,” said Ang.

CapBay is one of the largest P2P players, having funded over RM 400m on its P2P Financing platform since the start of the pandemic while their investors have generated net returns (after fees) of up to 10% p.a. with <0.1% default rate.

 

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CapBay News/Press

CapBay Introduces Malaysia’s First Guaranteed P2P Investment Backed by a Reserve Fund

  • The CapBay Assure programme offers investors principal plus interest guaranteed investments, yielding up to 6% p.a. net returns (after fees)
  • CapBay P2P has financed more than RM 300 million since the implementation of Movement Controlled Order (MCO) while maintaining <0.1% default rate

KUALA LUMPUR, 13 July 2021 – CAPBAY, a Malaysian Multi-Bank Supply Chain Finance and Peer-to-Peer Financing (P2P) platform launches CapBay Assure; a guarantee programme that protects an investor’s principal and interest through a reserve fund while ensuring net returns (after fees) of up to 6% p.a. The Assure Programme is a first-in-market that is designed to guarantee principal and interest payouts via a reserve fund that maintains a coverage ratio which is three to five times the expected default rate.

 

 

Ang Xing Xian, Co-founder and CEO of CapBay

 

Attractive returns backed by a reserve fund in current low yield environment

 

“We are excited to launch CapBay Assure after many months of meticulously designing the programme to ensure proper safeguards are in place. We introduced this programme due to strong investor demand for a safer P2P investment option that still yields higher returns compared to fixed deposits or money market funds. We believe that it is the right time to launch Assure on the back of the low interest rate environment and the current general economic concerns”.

 

“The structure of the programme gives our more cautious investors an option to significantly reduce their risks in exchange for slightly lower returns. While we’ve managed to maintain our 0% default rate throughout the pandemic, we believe that CapBay Assure will give investors greater confidence and is an important milestone in making P2P investments mainstream,” said CapBay’s Co-founder and CEO Ang Xing Xian, adding that CapBay Assure also translates the Company’s mission to make not only financing but also investment opportunities accessible to all levels of society. 

 

CapBay was part of the second batch of P2P license recipients in 2019 and launched its P2P platform amidst the COVID-19 situation with the intention of widening investment opportunities and providing access to financing to underserved SMEs. Since then, they have surpassed the RM300 million financing mark for P2P, setting a new record for the shortest time to achieve RM100 million among its peers. The CapBay Group, which includes its multi-bank supply chain finance platform, has been operating since 2017 and has surpassed RM1.2 billion in transactions.

 

Invest in safer asset class backed by the government and large corporate receivables while earning stable returns 

 

Through its strategic partnership with top institutions, CapBay enables investors to invest alongside institutional investors in a safer asset class that is backed by the government and corporate receivables, yielding net returns of up to 10% p.a. CapBay’s technological expertise differentiates itself by offering lower risk and higher quality investment notes. To date, CapBay has maintained a 0% default rate. 

 

“Through robust risk management and advanced credit scoring, we ensure our investors’ interests are protected. Since the implementation of MCO, we are aware that investors are actively looking for higher quality investment products that are low risk while also generating steady returns. CapBay aims to fill this gap,” added Ang.

 

CapBay’s expertise in the area of technology has earned them the prestigious award of “Fintech Startup of the Year” by The Triple A Digital Awards. This accolade marks CapBay as the first and only Malaysian fintech startup to be acknowledged with such recognition.

 

Recently, CapBay secured its Series A funding to further strengthen its technological infrastructure to enable efficient financing and market expansion in order to reach a wide range of investors and underserved SMEs. CapBay’s impressive business performance laid the foundation for successful fundraising. 

For more information on CapBay Assure, please visit https://capbay.com/capbay-assure/

To begin your investing journey with CapBay, visit https://capbay.com/invest/  

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CapBay News/Press

CapBay shatters record for being the fastest fintech to hit RM100 million in Peer-to-Peer Financing

  • CapBay P2P finances RM100 million with average net returns of 10% p.a. since implementation of Movement Controlled Order (“MCO”)
  • SMEs benefit from alternative financing amid trying times while CapBay maintains a <0.1% default rate in the financing provided
  • Strategic partnerships expand opportunities to invest alongside institutions in a safer asset class backed by government and large corporate receivables

KUALA LUMPUR, 11 December 2020 – CAPBAY, a Malaysian Multi-Bank Supply Chain Finance and Peer-to-Peer Financing (“P2P”) platform has achieved a key milestone by successfully funding RM 100 million across 500 investment notes on its P2P financing platform since its launch 9 months ago in March 2020. This achievement is part of CapBay Group’s strong track record of providing supply chain finance since 2017, facilitating a total of RM 800 million across 9,000 transactions covering underserved SMEs.

CapBay was part of the second batch of P2P licence recipients last year, while the first batch were announced back in November 2016. CapBay launched its P2P Investment platform amid the COVID-19 situation with the intention of widening access to financing to the underserved SMEs. Since then, they have surpassed the RM100 million mark, setting a new record for the shortest time to achieve RM100 million among its peers. According to Securities Commission Malaysia data, the whole P2P industry cumulatively raised RM80 million in June 2018 when many of the first batch of licensees launched their P2P investment platform three years earlier in early 2017.

“We are thrilled to achieve such a milestone especially while still plagued by the impact of COVID-19. That we have been able to do this in record time shows our ability to provide sustainable growth for both our SME clients and investors,” said Wong Jian Eu, CapBay’s Head of P2P.

CapBay shatters record for being the fastest fintech to hit RM100 million in Peer-to-Peer Financing (P2P)

Wong Jian Eu, Head of Peer-to-Peer Financing of CapBay

Strategic Partnerships Expand Investment Opportunities for CapBay’s P2P Platform Backed by Government and Large Corporate Receivables

With recent strategic partnerships inked between top institutions and CapBay, P2P investors can now invest alongside institutional investors in a safer asset class backed by government and corporate receivables. P2P investors on CapBay have earned net returns of 10% p.a.

CapBay differentiates itself by offering lower risk investment notes. By leveraging on its strong technological infrastructure, CapBay can provide cost-effective financing solutions with low credit risk. This has been reflected in its track record of <0.1% default rate on its P2P Investment platform. CapBay’s expertise in the key areas of technology, credit and risk management has earned them the accolade “Fintech Startup of the year 2020” by The Asset Triple A Digital Awards.

“Here in CapBay, we strive to continuously offer high quality investments for our investors. Through robust risk management and advanced credit scoring, we ensure our investors’ interests are protected. Since the Overnight Policy Rate (OPR) cuts, we know that investors are actively looking for more high-quality investment products that are safe and low risk while generating healthy income. CapBay aims to fill this gap,” added Wong.

For more information on CapBay’s P2P Investment platform, please visit www.capbay.com/invest/

 

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CapBay News/Press

CapBay enters into a joint venture with Kenanga to create Malaysia’s first Islamic Supply Chain Finance fintech

  • CapBay invests into developing Shariah-compliant supply chain finance market through Kenanga Capital Islamic Sdn Bhd (“KCI”) acquisition
  • Ang Xing Xian appointed as CEO of KCI to grow the business and integrate with CapBay’s award-winning technology
  • Dato Seri Mokhtar appointed as Chairman of CapBay’s holding company, Bay Group Holdings Sdn Bhd

KUALA LUMPUR, 3 November 2020 – CAPBAY, a Malaysian Multi-Bank Supply Chain Finance and Peer-to-Peer Financing (“P2P”) platform has acquired a 49%-stake into Kenanga Capital Islamic Sdn Bhd (“KCI”), a subsidiary of Kenanga Investment Bank Berhad (“KIBB”), forming a joint venture with KIBB to create Malaysia’s first Islamic Supply Chain Finance fintech. KCI has a long-standing track record in providing factoring to SMEs in the government sector.

 

Supply Chain Finance to Facilitate More Funding to SMEs

 

The Covid-19 pandemic has taken a toll on the cashflow of businesses of all sizes, but it is particularly challenging for the Small and Mid-size Enterprises (“SMEs”), who may not have access to quick and affordable financing to bridge the gap and emerge on the other side of the global crisis.

 

Supply Chain Finance allows working capital funding using data within the supply chain processes and transactions. For instance, SME contractors and vendors which supply goods or services to large corporates, Government, or Government-Linked Companies (“GLCs”) can obtain receivable financing. SMEs can leverage on the creditworthiness of the larger corporates. In turn, the larger corporates or GLCs are able to support their vendors through the crisis and strengthen their supply chain community. In today’s world one cannot exist without the other.

 

Leveraging Technology to Enable More Efficient Financing

 

Leveraging on CapBay’s strong technological expertise, this acquisition aims to transform Malaysia’s traditional factoring industry to enable SMEs to obtain financing seamlessly through a digital platform. The digital process allows transactions to carry on despite movement lockdowns. CapBay has developed proprietary technology to ease the onboarding of SMEs and credit evaluation. The Malaysian fintech’s unique payment risk scoring model that predicts the risk of each transaction goes beyond just financial statements analysis but utilises machine learning to assess thousands of data points such as historical relationships, payments, quality of contracts and other patterns. CapBay’s data-driven approach has allowed them to keep the default rate low while pushing the boundaries of financing the unbanked and underbanked.

 

CapBay’s Partnership With A Top Investment Bank

 

With the KCI acquisition, CapBay will be managing KCI through the appointment of Ang Xing Xian as CEO to continue the effort of growing the Shariah-compliant business and developing the Islamic Finance market. Xing Xian will report to Datuk Chay Wai Leong, Group Managing Director, Kenanga Investment Bank Berhad (“KIBB”).

 

“KCI is known for providing thorough and reliable SME financing in the government sector” said Datuk Chay. “We’re excited to enhance our service offering with a larger team of experts at CapBay and are now able to provide high quality financing services to both the government and private sectors.”

 

“We have always been committed to offering our customers the solutions they need to advance the growth of Malaysian businesses of all sizes. I am confident that this partnership with KIBB will allow us to grow as an organization and better serve our customers as we invest in our infrastructure and service offering.” said Ang, Co-founder of CapBay and CEO of KCI. The partnership is expected to support underserved SMEs that are estimated to grow 5 folds from its current RM 20 billion.

 

Ang Xing Xian, Co-founder of CapBay and Chief Executive Officer (CEO) of Kenanga Capital Islamic (KCI)

 

YBhg. Dato’ Sri Mohd Mokhtar Bin Haji Mohd Shariff appointed as Chairman of CapBay (Source: TMCLS Annual Report 2019)

Dato Sri Mohd Mokhtar appointed as Chairman of CapBay

 

CapBay has also announced the appointment of YBhg. Dato’ Sri Mohd Mokhtar Bin Haji Mohd Shariff as the Chairman of their holding company, Bay Group Holdings Sdn Bhd. He brings a wealth of experience and will be spearheading efforts to further enhance risk management practices in the areas of operational, fraud and Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT). Dato’ Sri Mohd Mokhtar holds a degree in Bachelor of Law (Hons), a Masters of Business Administration, Certificate of Legal Practice and was called to the Malaysian Bar in 2019. He served in the Royal Malaysia Police from 1977 to 2018, holding key senior positions namely, Director of Special Branch, Director of Narcotics Crime Investigation Department, Chief Police Officer of Johor, Deputy Chief Police Officer of Pahang and Head of Special Branch Kuala Lumpur. He is also a member of the Board of Directors for public-listed TMC Life Sciences Bhd since 2019.

 

For more information on CapBay’s financing solutions, please visit www.kenangafactoring.com.my  Start investing on CapBay’s P2P Investment platform today to diversify your investments at www.capbay.com/invest/.

 

 

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Telekom Malaysia Bhd welcomes CapBay as fintech partner for Vendor Financing Programme

  • Telekom Malaysia Bhd (“TM”) signs Memorandum of Understanding (MoU) with CapBay to provide flexible financing facility to TM local SME vendors
  • CapBay adds TM to its existing large corporates ecosystem that uses CapBay’s Supply Chain Finance platform
  • Expansion in investment opportunities for Peer-to-peer financing (“P2P”) Investors on CapBay’s platform in a safer asset class backed by government and large corporate receivables

 

KUALA LUMPUR, 7 September 2020 – CAPBAY, an award-winning Multi-Bank Supply Chain Finance platform and P2P platform became the first and only fintech selected to be part of national telecommunications giant Telekom Malaysia Bhd’s (TM) Vendor Financing Programme known as PERINTIS. CapBay will provide fast, affordable and fair access to supply chain finance solutions, bridging the cash flow gap for all levels and sizes of vendors throughout TM’s supply chain, including its SME subcontractors.

 

The MOU was signed by Imri Mokhtar, Group Chief Executive Officer of TM and CapBay’s CEO, Ang Xing Xian alongside other representatives from a panel of distinguished banks. The signing ceremony was witnessed by YB Dato’ Sri Dr Hj Wan Junaidi Tuanku Jaafar, Minister of Entrepreneur Development and Co-operatives, accompanied by Tan Sri Dato’ Seri Mohd Bakke Salleh, Chairman of TM.

 

The MOU Signing Ceremony was graced and witnessed by YB Dato’ Sri Dr Hj Wan Junaidi Tuanku Jaafar, Minister of Entrepreneur Development and Co-operatives, accompanied by Tan Sri Dato' Seri Mohd Bakke Salleh, Chairman of TM

The MOU Signing Ceremony was graced and witnessed by YB Dato’ Sri Dr Hj Wan Junaidi Tuanku Jaafar, Minister of Entrepreneur Development and Co-operatives, accompanied by Tan Sri Dato’ Seri Mohd Bakke Salleh, Chairman of TM. (Source: SME Bank picture archives)

 

“SMEs stand to benefit the most from this innovative programme as a large majority of TM’s vast network of nationwide vendors are SMEs” said Tan Sri Mohd Bakke Salleh, Chairman of TM Bhd in his speech at the Memorandum of Understanding (MOU) signing ceremony. “TM’s PERINTIS programme is in line with the government’s efforts to ensure that vendors can expand their job opportunities. As you are aware, SMEs are the backbone of the country’s economy, accounting for two thirds of employment and almost 40% of the economy. Therefore, it is important to ensure that they are able to face the challenges of the economic pressures plaguing us today”, said YB Dato’ Sri Dr Hj Wan Junaidi Tuanku Jaafar, Minister of Entrepreneur Development and Co-operatives during his speech.

 

Ang Xing Xian, CEO of CapBay photographed with YB Dato’ Sri Dr Hj Wan Junaidi Tuanku Jaafar, Minister of Entrepreneur Development and Co-operatives after his speech at MOU Ceremony between between Telekom Malaysia BHD

Ang Xing Xian, CEO of CapBay photographed with YB Dato’ Sri Dr Hj Wan Junaidi Tuanku Jaafar, Minister of Entrepreneur Development and Co-operatives after his speech at MOU Ceremony between between Telekom Malaysia Berhad and the Financial Institutions with the launch of PERINTIS Programme

 

Telekom Malaysia Bhd is the latest blue-chip corporate to implement CapBay’s flagship Supply Chain Finance platform

 

“We are pleased to partner with TM and be part of PERINTIS, expanding our reach to underserved SMEs in the telecommunication sector that need flexible working capital to grow their business and build resilience against the impacts of COVID-19,” said Ang Xing Xian, CEO of CapBay. “With TM’s assistance in authenticating relationships and transactions, vendor processing requests will be digitised end-to-end, making risk assessment, onboarding and transactional financing simpler and faster,” added Ang.

 

TM welcomes CapBay as the first and only fintech for PERINTIS. From left Ang Xing Xian (CEO and Co-founder of CapBay), Tan Sri Mohd Bakke Salleh (Chairman of TM Bhd) with Darrel Ang (Co-founder of CapBay)

TM welcomes CapBay as the first and only fintech for PERINTIS. From left: Ang Xing Xian (CEO and Co-founder of CapBay), Tan Sri Mohd Bakke Salleh (Chairman of TM Bhd) with Darrel Ang (Co-founder of CapBay)

 

Partnership expands investment opportunities for CapBay’s P2P platform for a safer asset class with healthier returns

 

With this latest initiative, CapBay’s P2P investors can now expand and diversify their investment portfolio backed by government and large corporate receivables while earning healthier returns. CapBay differentiates itself by offering lower risk investment notes in a bid to enhance investor trust and confidence especially during these times of uncertainty brought about by the COVID-19 pandemic.

 

“With the recent OPR cuts, investors are worried that they will see lower returns on their investments and are looking for higher yielding investments that are relatively safe. At our core, we strive to offer P2P investors high quality investment notes that offer good yield and low financing loss risk. Investors can consider this as an alternative to fixed deposit savings,” added Ang.

 

Through CapBay’s proprietary credit-decisioning model, CapBay is able to provide flexible and cost-effective financing to SMEs and at the same time contain credit risks with a good track record of low financing losses, making it an overall safer alternative investment. CapBay launched their P2P financing pilot programme in March 2020 amid the COVID-19 pandemic and has since achieved over RM20 million of financing over 150 notes while maintaining zero defaults and financing losses for their investors. Their tech solution has also been recognised and they were recently lauded as the “Fintech Startup of the Year” at The Asset Triple A Awards 2020.

 

CapBay Founders with The Asset award

CapBay’s Co-Founders with The Asset award (from left: Edwin Tan, Darrel Ang, Dion Tan and Ang Xing Xian)

 

To learn more about how Supply Chain Finance programmes can strengthen your value chain, please visit www.capbay.com/partner or contact [email protected]

To learn more about the CapBay P2P Investment Platform, please visit www.capbay.com/invest

 

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CapBay News/Press

CapBay partners with TheLorry to offer inclusive financing for SME lorry drivers

CapBay innovates with partner TheLorry, an online logistics platform to grant underserved SMEs in the logistics space access to affordable and collateral-free financing using alternative data.

  • CapBay makes it possible for lorry drivers, including those with poor credit scores, to relieve business cash flow pressures during Covid-19 and receive cash in time for Hari Raya celebrations
  • Lorry drivers in the financing program to receive cash upfront for Business-to-Business (B2B) jobs done and defer toll expenses, reversing the cash flow gap

KUALA LUMPUR — CapBay, a leading Multi-Bank and Peer-to-Peer (P2P) Supply Chain Financing platform, collaborates with TheLorry to launch the Express Financing program. The Express Financing program is tailored to the logistics industry and aimed at increasing accessibility of digital financing solutions for the financially underserved SMEs. Integration was completed with partners to extend financing to TheLorry’s SME base. Lorry drivers can now easily apply for collateral-free financing upfront and defer toll expenses up to 60 days later.

CapBay has seen a spike in financing volumes in recent weeks for the Express Financing program as there has been increased activity in the logistics sector driven by a switch to e-commerce in light of Covid-19 risks. There has also been increased demand for financing ahead of the Hari Raya celebrations.

CapBay innovates with TheLorry to elevate the financing experience for their userbase

Through the collaboration, CapBay is able to access over 10,000 driver-partners on TheLorry platform, most of which are underserved by traditional banks and have very limited access to financing. CapBay enables fast and seamless onboarding with simplified credit checks, made possible using track record available from TheLorry’s platform marketplace. This means that even lorry drivers with poor credit score can enjoy favourable financing rates.

“Through the financing solutions offered by CapBay, driver-partners can now join us without much hesitation,” said Nadhir Ashafiq, Co-founder and Executive Director of TheLorry. “TheLorry offers a comprehensive and integrated marketplace model. We connect professional drivers with corporate and individual customers through game-changing technology. Ever since integrating our offerings with CapBay’s Invoice Financing solution to support our business and driver-partner community, we have seen operational costs reduced as well as improved cashflow position – all of this whilst empowering our driver-partners to unlock weekly cashflow at the same time.”

A person holding a sign Description automatically generated
(from left to right: Darrel Ang, Co-founder of CapBay and Ethan Lim, Country Manager of TheLorry signs MoU)
CapBay uses human-centred design tools provided by UNCDF to customize financing program for B40 lorry drivers

A market research was conducted with United Nations Capital Development Fund (UNCDF) with the aim of helping aspirational lorry drivers (many of whom fall within the B40 segment) improve the financial health of their logistics businesses. Findings reveal a huge cashflow gap as lorry drivers often fork out cash upfront to cover high day-to-day operational expenses such as toll, fuel and vehicle maintenance costs to carry out B2B delivery jobs, only to receive lump sum payment 30 to 60 days later. Many cited having personal loans rejected or being ineligible for business bank loans due to lack of collateral, financial data and having poor credit scores. More recently, the industry was further impacted by the Covid-19 pandemic and Movement Control Order (MCO), threatening the business continuity of SME lorry businesses with the widening cash flow gap.

“Being in the logistics industry is tough. Without the financing program, I would have to fork out at least a month’s worth of expenses in advance. It was difficult to keep my business afloat,” said Pelangi Desa Trading business owner Shukur Sallih, the very first and valued Express Financing Customer. “Since joining the program, we have better cash flow position and quicker turnover to do more deliveries! Even in tough times now, the access to financing really helped cushion the impact of Covid-MCO.”

It began as a pilot project under UNCDF’s Financial Innovation Lab, a collaboration between Malaysia Digital Economy Corporation (MDEC), Bank Negara Malaysia (BNM), and Metlife Foundation, to improve the financial health of low-to-moderate income people in Malaysia and  CapBay was selected as its first cohort. The project also garnered support from MDEC and has since then received widespread interest from TheLorry’s driver-partner community.

“From day one of FinLab, CapBay was keen to serve the lorry drivers by understanding where their financial pressures lie. One year down the line, here we are, a one-stop solution that speaks to the needs of this underserved segment.” says April Khor, UNCDF’s Digital Innovation Specialist.

(from left to right: Darrel Ang, Co-founder of CapBay and Jeany Tan, Business Development Manager at FinLab Bootcamp)
CapBay helps business partners move fast with enterprise-grade financing infrastructure and technology

CapBay’s strong technological expertise allows for end-to-end digitization and automation of the financing process. The team can process large volumes of transactions with values as low as RM10. CapBay’s leading technology has been recognised by the industry, having recently won the “Fintech Startup of the Year 2020” in Malaysia by The Asset Triple A Digital Awards 2020.

“Our business partners and team members have worked tirelessly to get the Express Financing program up and cater to the increased demand ahead of Hari Raya,” said Darrel Ang, Co-Founder of CapBay. “It was designed to help even the smallest businesses and entrepreneurs. Many of our customers who would typically struggle to get traditional financing were happy to get it from us and in time for Hari Raya. We have been a strong advocate of financial inclusiveness, and we hope our program will continue to scale in helping the B40s, during Covid-19 and beyond.”

(Jeany is seen presenting to a group of lorry drivers at a “Jaga Kesihatan Kewangan Bisnes Anda” themed TheLorry roadshow)

For more information on the Express Financing Program, please visit: https://capbay.com/expressfinancing/.

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CapitalBay Receives SC Approval To Operate P2P Financing Platform

KUALA LUMPUR, 17 May – CapitalBay, an award-winning Malaysian multi-bank supply chain finance platform has received the approval from the Securities Commission Malaysia (SC) to operate a peer-to-peer (P2P) financing platform. The registration licence was presented today in a ceremony hosted by the Chairman of SC, YBhg Datuk Syed Zaid Albar and attended by the […]

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