Malaysian fintech firm nets $7m to grow Shariah-compliant finance arm

CapBay, a fintech startup based in Malaysia, has secured 30 million ringgit (US$7 million) from Kenanga Capital Islamic (KCI), a subsidiary of Kenanga Investment Bank Berhad (KIBB).

CapBay co-founder Xing Xian Ang / Photo credit: CapBay

Through this investment, the startup is looking to grow its Shariah-compliant supply chain finance arm. Called CapBay Islamic, it has already been approved for Shariah-compliant peer-to-peer financing by the Securities Commission Malaysia.

Last year, CapBay partnered with KIBB by acquiring a 49% stake in its subsidiary KCI to create Malaysia’s first fintech firm focused Islamic supply chain finance.

According to the Association of Islamic Banking and Financial Institutions Malaysia, half of Malaysia’s banking assets is expected to be Islamic by 2030 as the industry’s growth outpaces conventional banking.

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“We noticed many of our clients seeking an Islamic alternative to our products, and we are catering to this growing demand,” said Sri Mohd Mokhtar Mohd Shariff, chairman of CapBay.

Currency converted from Malaysian ringgit to US dollars: US$1 = 4.22 ringgit.