Malaysian fintech firm Microleap banks $3.3m from MAA Group

Malaysia-based peer-to-peer (P2P) financing platform Microleap announced that it has raised a total of over 13.2 million ringgit (US$3.26 million) from Malaysian investment holding company MAA Group in a new financing round.

The Microleap team/ Photo credit: Microleap

The funding comprises of more than 1.2 million ringgit (US$307,900) in equity and 2 million ringgit (US$492,800) in advances. These funds will be put into hiring more staff and making technology enhancements.

Microleap also secured an additional 10 million ringgit (US$2.5 million) from MAA Group to invest across its Islamic Investment Notes.

Launched in 2018, the Malaysia-based startup offers alternative financing and investment tools. The company focuses on the microfinance sector and claims to be the first P2P operator in the country that offers Islamic and conventional financing on the same platform.

“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,” said Tunku Danny Nasaifuddin Mudzaffar, the company’s CEO.

The fintech firm claims to have observed a 1,000% increase in funds disbursed to micro-enterprises since the launch of its Islamic Investment Notes offering since April last year.

Microleap is looking to expand its Islamic P2P financing services to small and medium-sized enterprises, along with new products such as Islamic car dealer financing and Islamic invoice financing in 2021. It also aims to launch its mobile application this year.

“P2P financing has been regulated in Malaysia since 2016, but Malaysia has only recently recognized its potential to help businesses and investors,” said Tunku Dato’ Yaacob Khyra, executive chairman of MAA Group.

Currency converted from Malaysian ringgit to US dollar: US$1 = 4.06 ringgit.