KUALA LUMPUR, MALAYSIA, 16 June 2017 - MyCash Online, a fintech startup that is providing online services to the unbanked has raised RM1.3M in 24 hours in their equity crowdfunding campaign on pitchIN. Cradle Fund Sdn Bhd (Cradle) led the funding round through their co-investment exercise along with a Hong Kong based co-investor.
The MyCash Online equity crowdfunding (ECF) campaign went live on 1st June 2017 and was fully taken up within 24 hours. Cradle Fund and co-investor JC Management took up RM1.2M while other investors snapped up the remaining RM100K.
MyCash Online operates a platform that offers online purchasing services to foreign workers. Users can reload phone credit, pay bills, buy bus tickets, and more. MyCash Online is also seeking regulatory approval to build and operate innovative remittances and banking services for the same target market. The company hopes to become a ‘virtual bank for the unbanked’.
MyCash Online also made history by becoming the first fintech company to successfully raise funds through equity crowdfunding in Malaysia. MyCash Online CEO Mehedi Hasan Sumon is grateful for the trust he has received from investors. “We are overwhelmed with the support we received. We would like to express our thanks to Cradle Fund and JC Management for participating as lead investors. Their investment is a validation of the potential of the market we are addressing. We will now be able to ramp up our services and do our part to bring our customers into the digital age through innovative services. We launched our business in April 2016. To date, we have served 65,000 unbanked customers and carried out more than 280,000 transactions worth RM4.3 Million.”
MyCash Online operates a platform that offers online purchasing services to foreign workers. The company hopes to become a ‘virtual bank for the unbanked’. The company just made history by becoming the first fintech company to successfully raise funds through equity crowdfunding in Malaysia.
Juliana Jan, Cradle Chief Investment Officer said, “We see the potential in MyCash because it addresses customers that most people forget, the migrants. There are more than 3 million migrants in Malaysia and 90% of them do not have access to banks or financial institutions. With the growing digital services available online, we strongly believe that the e-marketplace that MyCash operates provides the infrastructure for these unbankable migrants. Their business model has been proven and this is evident with the traction of over 230,000 in just the first year."
"MyCash has been in our radar for almost a year. The opportunity presented itself when pitchIN brought us this deal and we're ecstatic that we could close the deal fast. This is our first deal with pitchIN and we're hoping that we can co invest again in the future," Jan concluded
With this deal, pitchIN has cemented its position as the leading equity crowdfunding platform in Malaysia. Sam Shafie, the CEO of pitchIN said, “MyCash is yet another company curated by pitchIN that attracted strong interest from investors. pitchIN has consistently brought promising companies with validated business potential to investors. Over the past 12 months, 9 companies have successfully raised over RM6,000,000. We are seeing growing awareness from investors with each successful deal. Investors can look forward to yet more deals as pitchIN will be bringing plenty more deals this year.”
Information on upcoming deals can be found at www.equity.pitchin.my
We see the potential in MyCash because it addresses customers that most people forget, the migrants. There are more than 3 million migrants in Malaysia and 90% of them do not have access to banks or financial institutions. With the growing digital services available online, we strongly believe that the e-marketplace that MyCash operates provides the infrastructure for these unbankable migrants. Their business model has been proven and this is evident with the traction of over 230,000 in just the first year.
pitchIN is best described as Malaysia’s national crowdfunding platform, having championed crowdfunding since 2012 and offering both Equity and Reward crowdfunding services. It is a registered equity crowdfunding operator with the Securities Commission. pitchIN Equity went live in March 2016 and to date it has successfully funded 9 deals. It has raised over RM6 million to date, making it the number one ECF platform in Malaysia. More information at www.equity.pitchin.my
MyCash Online is an e-Marketplace specially designed for massive pools of Migrants in Malaysia. MyCash Online provides a tailor-made platform for the unbanked, where they can purchase product and services online without using any bank account or credit cards or prepaid cards. MyCash Online has been operating for 10 months and has served more than 65,000 unbanked migrants workers.
Cradle Fund Sdn Bhd (Cradle), an agency under the Ministry of Finance Malaysia (MOF) is the organisation that manages the Cradle Investment Programme. The MOF had allocated RM100 million to Cradle for this programme since it began in 2003.
The agency was awarded with an additional allocation of RM175 million for the 2011-2015 period, under the 10th Malaysia Plan. Cradle now runs the Coach and Grow Programme (CGP), a market-driven programme to train entrepreneurs and also administers the Angel Tax Incentive, which was designed for angel investors to be accorded a tax deduction of up to RM500,000.
The organisation has been expanding its capacity by venturing in co-investment partnership. Since its inception, Cradle has helped over 700 Malaysian tech start-ups and holds the highest commercialisation rate amongst government grants in the country.
For more information, please visit www.cradle.com.my