CapBay, a Malaysian multi-bank supply chain finance (SCF) and peer-to-peer (P2P) financing platform, has secured RM30 million (US$7.1mn) from Kenanga Capital Islamic, a subsidiary of Kenanga Investment Bank Berhad (KIBB), which it will use to grow its shariah-compliant SCF arm, CapBay Islamic.

“CapBay is thrilled to receive the support from Kenanga and for sharing the same spirit of helping SMEs thrive especially during this time. The injection of funds will help to accelerate the growth of Malaysian SMEs and with the launch of our Islamic receivables and working capital financing solutions, we believe that this will add another dimension to our efforts in supporting SMEs in this country”, says Sri Mohd Mokhtar Mohd Shariff, CapBay chairman.

The fintech says that the investment will be used across its P2P Islamic financing notes, which are predominantly backed by government and government-linked company receivables.

“The adoption rate of Islamic financing in Malaysia is growing – this is a clear reflection of the demand for shariah-compliant products in the country. We noticed many of our clients seeking an Islamic alternative to our products and we are catering to this growing demand,” adds Shariff.

Since its launch in 2017, CapBay says it has financed more than 14,000 transactions worth over RM1.4bn, serving over 800 SMEs, and adds that its P2P platform has maintained 0% default since its launch in March 2020.