CapitalBay, a Malaysian-based fintech start-up, has secured a RM2 mil investment from Singapore-based KK Fund.
The start-up will use the financing to accelerate product development, build up its team and ramp up customer acquisition.
CapitalBay is a multi-bank supply chain finance platform which helps large corporations, and small and medium enterprises (SMEs) optimise their working capital using technology. It aims to play a more supporting role in advancing Malaysia’s supply chain finance ecosystem by improving overall cost efficiencies.
CEO and co-founder Ang Xing Xian says while there have been growing interest from financial institutions, Malaysia’s supply chain finance scene is still in its infancy and facing a unique set of problems.
“We aim to support industry growth through our technology infrastructure, legal infrastructure and operational infrastructure,” says Ang.
Through its technology and legal infrastructure, the CapitalBay platform allows SME suppliers to receive early payments at attractive rates from liquidity providers leveraging on their buyers’ credit strengths, with no collateral required.
Simultaneously, the large corporate buyers extend their payment terms in a sustainable manner and reduce overall costs in the supply chain. Alternatively, buyers who are cash-rich may choose to self-fund their supply chains to earn high return on their idle cash, essentially risk-free.
It serves as a platform that connects multiple financial institutions to a large network of corporate supply chains through one single implementation process. This reduces the need for capital expenditure in technology development, ongoing transactional support and execution. At the same time, cost-efficiency of supplier on-boarding can also be significantly improved.
A combination of security features, proprietary risk algorithms, credit assessment, and trade data analysis allows CapitalBay to offer a secure platform for all stakeholders to take advantage of customisable supply chain finance programmes.
So far, CapitalBay has completed multiple transaction cycles with its initial Bursa-listed buyers, which collectively hold more than RM2 bil worth of accounts payable.