CapitalBay
Funded
Note: The campaign's cooling period has commenced and no new investments will be accepted
Investment highlights
Enduring global trade financing gap
Global trade financing gap in 2017 persisted at USD1.5tr – Micro, Small, and Medium-sized Enterprises (“MSMEs”) in Asia-Pacific (“APAC”) remain underserved despite the rise of alternative financing options
Robust traction; breakeven in sight
Facilitated 2,000+ B2B transactions to date with healthy margins; well on track to breakeven by 2020
Sophisticated credit assessment with 0% historical default rate
Proprietary credit assessment model that uses financial supply chain technology to automatically assess fraud risk and invoice validity, yielding a 0% default rate to date
Stellar reputation as a trusted partner to MSMEs
CapitalBay provides its clients with value-added services including, receivables management, giving it a significant edge over its peers
Financing platform built on quality businesses and funders
Passed rigorous due diligence by major global Financial Institutions (”FIs”) thereby validating their technical capabilities
Won numerous accolades
Gained recognition through numerous local and regional awards such as Best Supply Chain Financing (“SCF”) Fintech in APAC by The Asian Banker
Talented management team
Extensive and diverse experience in finance, regulatory and consulting at multiple global MNCs, including HSBC, Credit Suisse, Oliver Wyman, Deloitte and Accenture
Use of proceeds
- Launch of Peer-to-Peer (“P2P”) SCF platform
- Business development and marketing
- Scaling up of client base across Malaysia
- Development of new financing products
- Increasing revenue per client and financing approval rates
Background
- Established in 2016 in Malaysia, CapitalBay is a multi-bank SCF platform providing cash flow solutions such as contract financing, invoice financing and invoice factoring
- Using a proprietary digital validation process and credit assessment matrix, CapitalBay scores companies based on their cashflow viability before issuing financing
- CapitalBay has also won numerous accolades: in 2018, the Company was awarded Best FinTech Platform for Supply Chain in Asia Pacific and Best Financial Supply Chain Management in Malaysia by the prestigious Asian Banker Awards
- CapitalBay’s revenue model consists of:
- Platform fee – 1.25% fee for matching demand and supply of B2B financing through SCF platform, with the use of intelligent workflow and payment decisioning technology
- Investor service fee – 25% commission through investing in SCF assets for non-lenders
- Apart from providing financing, CapitalBay’s secondary focus is on building a Software-as-a-Service (“SaaS”), which enables MSMEs to achieve higher standards of receivable management
- Data-mining allows CapitalBay to deepen their understanding of the SCF market and enhance their customer screening and targeting capabilities
- To date, CapitalBay has >200 businesses on its platform including large FIs
- Successfully facilitated >2,000 B2B transactions in Malaysia worth >USD21.6m
- Achieved a non-performing ratio of 0% as compared to the 2019 industry average of 1.5% in Malaysia
- In May 2019, CapitalBay received approval from the Securities Commission Malaysia to operate a P2P financing platform, allowing individual investors to participate in funding SCF assets alongside financial institutions
Traction
To date, CapitalBay has >200 businesses on its platform including large FIs and has successfully facilitated >2,000 B2B transactions in Malaysia worth >USD21.6mManagement team
Director / Co-Founder
Strategy consulting in Accenture, experienced in the field of telecommunication and media
Master of Science in Management with Information Systems and Innovation, London School of Economics