According to latest statement,microLEAP, Malaysia’s first platform that offers both Islamic and Conventional Peer-to-Peer (P2P) financing is pleased to announce a successful RM3.25 million funding round, made up of RM1.25 million in equity and a RM2 million advance, and RM10 million in investments from MAA Group Berhad. The RM10 million in investments will be spread across microLEAP’s Islamic investment Notes up to 30% per Investment Note.
“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. 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.” stated Tunku Danny Nasaifuddin Mudzaffar, CEO of microLEAP.
He further added; “Since the launch of our Islamic Investment Notes back in April of 2020, we have seen an increase of funds disbursed to micro-enterprises by 1,000% in just a few short months. This 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.”
Aside from the RM10 million funding in microLEAP’s Islamic Investment Notes, the P2P microfinancing platform will also be receiving RM1.25 million in equity coupled with another RM2 million advance from MAA Group Berhad. These funds will be used for advertising & promotions, hiring of more staff and tech enhancements. This will not only help microbusinesses most in need of the financial support but will also pave the way for more of such investments that can help rebuild the Malaysian micro-economy.
“Peer-to-peer (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,” says Tunku Dato’ Yaacob Khyra, Executive Chairman of MAA Group.
microLEAP is the first of 11 financing companies regulated by Securities Commission (SC) Malaysia that offers both Islamic and conventional P2P financing on one platform. While 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 whilst ensuring that all businesses and investments are ethical and adhere to Islamic laws. In fact, more than 95% of the financing that goes through microLEAP is Islamic, as its benefits are aplenty.
Starting from just RM50, P2P Investors are able to collectively support business owners through P2P microfinancing. Allowing Investors the option to diversify their investments in many different businesses, Investors would also be able to benefit from gross returns of up to 18% per annum whilst providing financing to micro-businesses that might have difficulty raising funds through traditional means.
Aside from being Investor-friendly, microLEAP constantly seeks to be Issuer (Borrower)-friendly as well, as it finds ways for both parties to enjoy a mutually beneficial arrangement. The range of financing starts as low as RM1,000 reaching as high as RM50,000 with free basic debt management and accounting online training as well as complimentary personal accident insurance provided. microLEAP also requires a business to be in operation for only six months for them to be evaluated as opposed to the typical three years’ track record that banks require, drastically increasing the chances of approval for younger businesses. Beyond this, specifically for Islamic financing, microLEAP absorbs the Islamic Commodity Brokerage fee which eases the burden of micro-businesses while late payment fees go to charity.
Moving forward, in 2021, microLEAP looks to further expand its Islamic P2P financing services to Small and Medium Enterprises (SMEs) as well, with new products such as 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, it is crucial to tap into the market to provide alternative funding options for them to grow their businesses. microLEAP also aims to launch its Apple IOS and Google Android app in 2021 to further ease application processes and manage financing at the palm of both the Issuers and Investors’ hands.
To find out more about microLEAP and the services they offer, please visit www.microleapasia.com available in both Bahasa Malaysia and English
