MDV strengthens fintech partnership with Capbay through US1.2 mil facility to boost SME growth 

• Aims to expand supply chain finance solutions, deliver financial products to M’sian SMEs 
• CapBay facilitated over US$813M in financing, with US$239M \in Shariah-compliant funding

Malaysia Debt Ventures Berhad (MDV) has announced the continuation and expansion of its strategic partnership with CapBay, a leading fintech company specialising in Peer-to-Peer (P2P) financing and supply chain finance. MDV is extending a new US$1.2 million (RM5 million) facility to CapBay to further support tech-driven SMEs and improve access to alternative financing solutions.

MDV first partnered with CapBay in 2021 by providing a pilot fund for investment through CapBay’s P2P platform. This fund, aligned with the Ministry of Science, Technology, and Innovation’s (MOSTI) 10-10 Malaysian Science, Technology, Innovation, and Economy (MySTIE) framework, aimed to support the industry’s recovery from the pandemic. The pilot fund has since grown six-fold, demonstrating MDV’s confidence in CapBay’s innovative approach to SME financing and its strong performance.

CapBay, globally recognised for its leadership in fintech, has facilitated over US$813 million (RM3.4 billion) in financing, including US$239 million (RM1 billion) in Shariah-compliant funding, benefiting 1,800 SMEs across 20 industries. Featured in CNBC and Statista’s Global Fintech Companies list (2023 and 2024) and ranked 30th on the FT High-Growth Companies Asia-Pacific 2024 list, CapBay has achieved an 18x expansion and a 166% compound annual growth rate (CAGR) from 2019 to 2022.

[RM1 = US$0.29]

Since its inception in 2017, CapBay has transformed SME financing in Malaysia through its Multi-Bank Supply Chain Finance platform, using AI-powered credit scoring, advanced data analysis, and machine learning to assess SMEs often overlooked by traditional banks. This approach has enabled CapBay to provide targeted financing while maintaining a default rate of less than 0.3%. Licensed by the Securities Commission Malaysia, CapBay’s P2P platform offers investors access to private credit deals with average net returns of up to 8.3% per annum, strategically diversifying funds across multiple financing notes to reduce risks and optimise returns.

The new RM5 million facility underscores MDV’s confidence in CapBay’s ability to deliver efficient financing solutions for startups and SMEs, particularly those struggling to secure traditional funding. With this partnership, CapBay plans to further expand its supply chain finance solutions and deliver innovative financial products to SMEs across Malaysia. These funds will help the firm continue offering alternative financing solutions to Malaysian SMEs, many of whom face challenges securing loans from traditional banks. This aligns with MDV’s long-term goal of leveraging digital fundraising platforms to diversify financing options for technology-based companies.

“Our partnership with CapBay underscores MDV’s commitment to driving innovation in Malaysia’s rapidly evolving FinTech landscape,” said Rizal Fauzi, CEO of MDV. “As SMEs face challenges accessing traditional financing, especially in the tech sector, we are facilitating critical funding that empowers these businesses to scale, innovate, and contribute to Malaysia’s economic resilience and growth. This partnership is a testament to our belief in the potential of digital finance to unlock new opportunities for underserved enterprises.”

Mohd Mokhtar Mohd Shariff, chairman of CapBay, also expressed gratitude for MDV’s continued support. “We deeply value MDV’s continued support and confidence in CapBay’s vision. Our ongoing partnership with MDV is a testament to the significant strides we are making in transforming SME financing. This collaboration allows us to drive innovation that reaches underserved businesses, creating meaningful opportunities for growth. Together, we are not only helping SMEs thrive but also building a more inclusive financial ecosystem that supports long-term economic resilience and competitiveness in Malaysia."

MDV and CapBay’s collaboration underscores a shared commitment to fostering innovation in the financial sector. Through CapBay’s platform, MDV is helping technology-based SMEs access alternative financing solutions, overcoming traditional funding barriers and achieving sustainable growth.

“We believe fintech is reshaping the future of finance, providing innovative solutions that broaden access to capital and empower businesses to succeed in a fast-moving digital world. As MDV continues to champion forward-thinking partners like CapBay, we are confident in our ability to assist underserved SMEs to overcome traditional financing challenges and accelerate their growth,” concluded Rizal.