Fintech Fundaztic to help fund SMEs

By LYDIA NATHAN’s newly launched peer-to-peer (P2P) platform is expected to draw investors into funding more than 500 micro, small and medium-sized enterprises (SMEs) that would reach a funding goal of RM40 million by the end of 2018.

Fundaztic CEO Kristine Ng Wei Miem said the target is achievable as the company offers the lowest entry barrier of RM50, the cheapest in the market so far, making it easy for anyone to invest.

“Fundaztic opens up doors for SMEs. Everything is done online and no deposit is collected from issuers.

“We also don’t need to have any collateral and our funding size is smaller. You are also guaranteed to receive the first month principles plus interest upon disbursement,” she told The Malaysian Reserve in an interview yesterday.

She said that Fundaztic has already registered 55 applications since its soft launch two months ago.

“We have to date hosted 16 notes while successfully disbursing eight. In terms of hosting amount, it is RM2 million so far,” she said.

Fully owned and managed by Peoplender Sdn Bhd, Fundaztic is a financial technology startup — one of the six P2P financial platforms that are licensed as a recognised market operator (P2P Financing) by the Securities Commission of Malaysia (SC).

Malaysia is also the first country in Asean to have a P2P platform that is regulated by the SC.

Ng said the P2P process of lending or borrowing money from one person to another means that businesses or start-ups are able to raise funds and invest.

She added that the investment landscape in Malaysia entails various choices for SMEs to go into, but the entry barriers, for example the accessibility to funding or the need to complete documentation, pose a difficulty to people.

“This is where P2P fills the gap; it makes it much easier for people to start investing and applying for funds.

“Fundaztic wants to hit the masses to fill the gap. According to the SC, the Malaysian SME sector has a financing gap of more than RM80 billion and we are proud to be able to do our part in supporting this,” she said.

Fundaztic operates as a fully digital platform where an SME is able to put in an application to apply for funding, once all requirements are filled up and uploaded, it then goes through a credit evaluation platform which then takes ten minutes. Assuming it is approved, the SME will then receive the terms and conditions, and the agreement is signed electronically.

Ng said the company will screen the application again before hosting it on their website in order to protect investors as well.

“We need to be very careful and that’s why we conduct a fair amount of due diligence for safety on both sides of the parties. Once the application is hosted, it then becomes a note. Each note will have a unique identification and this enables the investors to be linked with the issuers,” she said.

The funding option ranges bet ween R M20,000 a nd RM200,000 and issuers have 30 days to raise funds. The funds are then disbursed to the SMEs bank account after a minimum investment of 80%.

“In any case where it does not meet the minimum value, all investors will receive their money back into the trust account with no charges. They then have an option of investing in other notes or withdraw fully,” Ng said.