Malaysian P2P Financing Startup Fundaztic raises US$720K in 38 Minutes on pitchIN

Fri Oct 26, 2018 - 8:41am UTC
Fundaztic

Fundaztic

26/10/2018 – Fundaztic, a peer-to-peer financing startup based in Malaysia has reportedly secure RM3 million (about US$720k) via equity crowdfunding platform pitchIN.

The campaign was live on October 17, 2018 and pitchIN confirmed the deal was fully funded after the end of a mandatory six-day cooling off period with a total of 64 investors participating in the round.

pitchIN CEO Sam Shafie said that this record is another validation to the deals on the platform, “Fundaztic is pitchIN’s 22nd successful equity crowdfunding deal and we have maintained our record of 100 percent successful deals since we launched in May 2016.”

pitchIN has raised over RM29 million (about US$7 million) for Malaysian companies to date, making them by far the most successful ECF Operator in Malaysia.

Shafie added, “We knew from its strong pre-live interest that Fundaztic would be successfully funded and we were delighted to see the deal funded in just 38 minutes. Fundaztic is also special to us because it is a fellow Registered Market Operator with the SC, albeit in the P2P Financing sector.”

This deal also marks the first time that two Securities Commision-recognised crowdfunding platforms have came together in a fundraising alliance.

Fundaztic CEO Kristine Ng explained, “When we planned this fundraising round, we felt that our elite club members, who are the strongest supporters of our P2P financing deals and should be given opportunities to invest in Fundaztic. The best platform to do this was through ECF and we naturally turned to pitchIN.”

Operated by Peoplelender Sdn Bhd, Fundaztic said the capital would be used to grow Fundaztic’s team and to increase penetration in the SME markets while maintaining the quality of notes raised.

Besides, part of the capital would also go into developing its own secondary market to allow investors to trade notes before its maturity to enable them to cash out earlier if needed.

Founded in 2016, Fundaztic aims to provide insights and knowledge on crowdfunding to the general public with a particular focus on peer-to-peer financing as an alternative financing platform in Asia.

To democratize financing and investment for businesses and individuals, the startup applies reliable big data and technological leverage to lower entry barriers via an easy financing access and providing attractive rates equitable to risks.

“Fundaztic is founded to tackle the intricacies and potential of FinTech in the ASEAN region, specifically in the area of peer-to-peer financing For entrepreneurs, Fundaztic offers a crowdfunding platform to raise funds, gain visibility, and build traction, while gaining access to innovative services and tap into Asia’s fastest-growing financing instrument,” said Ng.

In June this year, Fundaztic entered into a collaborative agreement with OCBC Bank to enhance access to financing for micro, small and new businesses.

This news is published on Reuters.

Vivian Foo is a reporter who writes about Southeast Asia’s technology and startup space. The entry point which led her to write about the startup ecosystem was her fascination of the dot-com boom. She is taking a deep dive into how the entrepreneurial mindset works and hopes to share the insights, innovation, and stories of the startups with her readers.