By S BIRRUNTHA
MICROLEAP, Malaysia’s first platform that offers both Islamic and conventional peer-to-peer (P2P) financing, has received a RM3.25 million funding which consists of RM1.25 million in equity and a RM2 million advance.
According to a statement from microLEAP, the RM3.25 million will be used for advertising and promotions, hiring of more staff and technology enhancements.
The platform has also secured an additional RM10 million from MAA Group Bhd, which comprise investments which will be spread across microLEAP’s Islamic investment notes; up to 30% per investment note.
The funds are expected to not only help microbusinesses most in need of the financial support, but to pave the way for more of such investments that can help rebuild the country’s micro-economy.
microLEAP CEO Tunku Danny Nasaifuddin Mudzaffar (picture) said with the impact of Covid-19 affecting businesses large and small till this day, microLEAP is motivated to empower and ease the burden of those in need.
“microLEAP is glad and honoured to receive support from such a prestigious and highly respectable entity.
“It is a signal that we are on the right track and that we have built a company that has grown leaps and bounds within the highly competitive P2P financing industry,” he said in a statement yesterday.
He added that since the launch of its Islamic Investment Notes in April 2020, the platform has seen an increase of funds disbursed to micro-enterprises by 1,000% in just a few months.
He said the injection of funds will help accelerate the growth of Malaysia’s P2P financing industry as more investors gain confidence in the business model, allowing for more micro-businesses to be positively impacted.
Meanwhile, MAA Group executive chairman Tunku Datuk Yaacob Khyra said P2P financing has been regulated in Malaysia since 2016, but Malaysia has only recently recognised its potential to help businesses and investors.
“We have seen tremendous growth in this space with many P2P operators emerging. “With that said, we are glad to join hands with one of the industry’s key players, microLEAP, to lend a hand to businesses that require additional support to get off the ground, stay afloat or simply expand in this turbulent period.
“We are excited to see what the future holds for both parties following this collaboration,” he added.
microLEAP is also expected to further expand its Islamic P2P financing services to small and medium enterprises (SMEs) as well, with new products including Islamic Car Dealer Financing and Islamic Invoice Financing set to be launched early in the year.
With SMEs in Malaysia amounting to 98.5% of businesses, the platform said it is crucial to tap into the market to provide alternative funding options for them to grow their businesses.
microLEAP is also expected to launch its Apple IOS and Google Android app this year to further ease application processes and manage financing at the palm of both the issuers and investors.
microLEAP is the first of 11 financing companies regulated by Securities Commission Malaysia.
In light of some individuals tend to prefer conventional investment as opposed to Islamic investment due to lower costs, microLEAP offers a very competitive rate to their clients by absorbing the Islamic commodity brokerage fee while ensuring that all businesses and investments are ethical and adhere to Islamic laws.
More than 95% of the financing that goes through microLEAP is Islamic as its benefits are aplenty.