The Monetary Authority of Singapore (MAS) has placed peer-to-peer lender Capital Match on an investor alert list, which warns people of entities that may be incorrectly perceived to be licensed or regulated by the authority.
The addition was made on February 24, a day after Tech in Asia published a report on the firm’s alleged questionable practices that led to investors on the platform taking on more risk than they intended to. This is according to two investors on the platform, who each put in a “six-figure” amount in US dollars into the platform between 2016 and 2019.
Photo credit: Capital Match’s website
Capital Match has said that it “strongly disagrees with any allegation of false or misleading information having been provided to investors on the platform.”
See also: Another P2P lender goes south: millions on the line for Capital Match’s investors
Capital Match, which provides financing to SMEs by way of invoice financing, is not licensed by MAS. The firm is a subsidiary of Sesami, a Singapore-based procurement company.
Capital Match is currently embroiled in a lawsuit with Sanmina-SCI Systems, a subsidiary of electronics manufacturer Sanmina Corporation, for US$7.7 million in repayments on invoices that the P2P firm claims are owed to it.
The company acquired these invoices, which were issued by an SME to Sanmina-SCI Systems for services rendered, using funding from investors.
It is also in the process of legal proceedings against other debtors, including one with Japanese textile manufacturer Toyobo. In total, the outstanding sum likely impacts hundreds of investors.
Tech in Asia understands that a report has also been filed against the firm with Singapore’s Commercial Affairs Department.
Editing by Terence Lee, Miguel Cordon, and Jaclyn Tiu
(And yes, we’re serious about ethics and transparency. More information here.)
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