CapBay, a Malaysia-headquartered supply chain finance (SCF) and peer-to-peer Financing (P2P) platform, said it has reached profitability last year.

“We are profitable since last year. So this year, despite moving to Singapore and Thailand, we managed to maintain our profitability,” CapBay Co-Founder and Chief Business Development Officer Darrel Ang told TechNode Global on Thursday evening on the sidelines of an event.

During the event, CapBay announced it has achieved a significant milestone by providing over MYR1 billion ($220.91 million) in funding to more than 400 underserved small and medium enterprises (SMEs) in Malaysia. This is the result of successful financing through 7,600 investment notes, underscoring CapBay’s commitment to empowering SMEs and offering attractive investment opportunities for potential investors, the company said in a statement.

As a supply chain financing (SCF) specialist, CapBay offers tailored financing solutions to SMEs in various industries. Through its so-called proprietary credit-decisioning model, businesses of all sizes can obtain financing, while banks and investors can participate in high-quality financing deals.

The company said it has partnered several large corporates, banks, and institutional investors to offer its solution. Regulated by Securities Commission Malaysia (SC), the CapBay Group, which includes its multi-bank SCF platform and Islamic factoring house, has provided over MYR2.5 billion in financing, helping over 1,600 businesses through its alternative financing solutions.

“Our remarkable growth in recent years has positioned CapBay P2P as a leader in the Malaysian P2P space. Together with our talented team and unwavering investor support, we will continue pushing boundaries, unlocking new opportunities, and scaling greater heights,” CapBay’s Co-founder and CEO Ang Xing Xian said in the statement.

Recognizing the significance of alternative financing in the Malaysian economy, the government has allocated MYR40 million to the Malaysia Co-Investment Fund (MyCIF) as part of Budget 2023. CapBay said it was one of the key P2P platforms that helped to drive the MyCIF program which has collectively co-invested over MYR540 million, benefiting at least 3,500 MSMEs.

As demand for alternative financing options increases and government initiatives drive industry growth, CapBay said it is poised to unlock more potential within the region.

To fulfil its vision of becoming a technology enabler within Southeast Asia, CapBay aims to bridge the financing gap for underserved SMEs and expand its operations across Southeast Asia, having set up offices in Singapore and Thailand this year.

Additionally, CapBay is actively pursuing joint ventures, mergers, and acquisitions with key players across the value chain to establish itself as a dominant omni-channel platform offering synergistic regional supply chain financing, holistic financial services, and data and technology solutions, the company added.

Since 2017, CapBay has financed more than 22,000 transactions worth over MYR2.5 billion, serving over 1,600 SMEs.

According to data platform Crunchbase, CapBay has raised a total of $27.6 million in funding over three rounds. Their latest funding was raised on Dec 20, 2021 from a Corporate round where CapBay secured $7.1 million investment from Kenanga Capital Islamic Sdn Bhd (KCI), a subsidiary of Kenanga Investment Bank Bhd. Singapore-based VC firm KK Fund is another investor.

Besides Xing Xian and Darrel, Capbay’s two other co-founders include Edwin Tan and Dion Tan, who is also the group managing director of Malaysia-listed property developer Tropicana Corporation Bhd.

Capbay (Bay Group Holdings Sdn Bhd) saw its revenue jumped to MYR17.34 million in 2021, from MYR3.19 million in 2020. Loss after tax for 2021 narrowed to MYR3.01 million from a loss after tax of MYR4.65 million in 2021, data from Companies Commission of Malaysia (SSM) showed. Revenue in 2019 stood at MYR1.62 million, while its loss after tax was MYR1.29 million.

Key financial information for 2022 is not available on SSM’s website yet.

Malaysian fintech firm CapBay secures $7.1M from Kenanga Investment Bank