This article first appeared in The Edge Malaysia Weekly on November 20, 2023 – November 26, 2023
KHAZANAH Nasional Bhd is looking at acquiring a stake in Modalku Ventures Sdn Bhd, the company behind small- and medium-sized enterprise (SME) digital financing platform Funding Societies Malaysia, sources say.
“It is currently at the due diligence stage,” a source tells The Edge, adding that the potential investment would fall under Khazanah’s Dana Impak initiative. The move would enable it to spur financing for SMEs, many of which face difficulty in obtaining funds from banks.
Dana Impak, a key pillar under the sovereign wealth fund’s Advancing Malaysia strategy, is a RM6 billion allocation over five years that seeks to invest in areas that would boost the country’s economic competitiveness and build national resilience, while delivering socioeconomic benefits and impacts to the people.
The Edge understands that a development financial institution may also invest in Modalku Ventures in partnership with Khazanah, albeit on a smaller scale.
When contacted, Khazanah and Funding Societies Malaysia co-founder and group CEO Kelvin Teo declined to comment.
Modalku Ventures, one of the entities under the Funding Societies|Modalku group, is wholly owned by Singapore-based Funding Asia Group Pte Ltd.
Launched in February 2017, Funding Societies Malaysia is the country’s largest SME digital financing platform. The platform brings together SMEs and investors, offering short-term financing products to SMEs and investment opportunities to individuals and institutions that want to invest in Malaysian SMEs.
Khazanah said to be looking to invest in Funding Societies entity
According to CTOS data, Modalku Ventures has yet to turn a profit. It registered its best performance in the financial year ended Dec 31, 2022 (FY2022), having narrowed its loss after tax to RM314,329 from RM4.59 million in FY2021. Revenue that year improved substantially to RM181.11 million — its best yet — from RM9.31 million in FY2021. The company has a paid-up capital of RM22.41 million.
Apart from Malaysia, Funding Societies is in four countries — Singapore, Indonesia, Thailand and Vietnam — and claims to be the largest SME digital financing platform in Southeast Asia.
Regionally, the platform has disbursed RM15.34 billion across more than five million transactions of business financing to SMES, with a low default rate of 1.71%, according to data as at November on its website. In Malaysia, the current default rate is slightly higher, at 2.23%. Almost 100,000 SMES have benefited from the access to financing.
In November last year, Funding Societies Malaysia collaborated with national car maker Proton Holdings Bhd to provide credit facilities for dealers to finance the purchase of cars for floor stocking.
Earlier in June, Khazanah had, under its Dana Impak mandate, led a Series B fundraising round of a Malaysian home-grown insurance technology (insurtech) company, PolicyStreet, raising a total of US$15.3 million, or RM67 million at the time. PolicyStreet, a full-stack insurtech company, provides digital and customised insurance solutions to consumers and businesses.
Dana Impak funds are meant to be invested across six key themes, namely digital society and technology, food and energy security, decent work and social mobility, quality health and education for all, building climate resilience and competing in global markets.
Last month, Khazanah managing director Datuk Amirul Feisal Wan Zahir said that Dana Impak would allocate RM600 million in 2024 to spur economic growth and create opportunities for rural, suburban and underserved communities, in line with the government’s vision of more balanced regional development.
Save by subscribing to us for your print and/or digital copy.
P/S: The Edge is also available on Apple’s App Store and Android’s Google Play.
News Related
-
Window opens for Zahid to ride off into the sunset – but at Anwar’s cost Sources within Umno have not ruled out strong speculation since last month about a so-called “exit plan” for Ahmad Zahid Hamidi, a move that could pave the way for his political retirement having survived more ...
See Details:
Window opens for Zahid to ride off into the sunset – but at Anwar's cost
-
Brianna Ghey died after she was found with fatal stab wounds in a park Two teenagers accused of murdering Brianna Ghey showed a “preoccupation” with “violence, torture and death”, a court has heard. The body of Brianna, 16, who was transgender, was discovered by dog walkers in a park in ...
See Details:
Murder-accused teens 'had preoccupation with torture'
-
ISLAMIC REVOLUTIONARY Guard Corps Commander-in-Cheif Major General Hossein Salami speaks at an anti-Israel protest in Tehran on Saturday. The IRGC trained Hezbollah to use human shields, say the writers. The conflict in Gaza has raised a deeply troubling issue: Reports suggest that Hamas is deliberately using civilians as shields, a ...
See Details:
A plea for Islamic voices against using human shields - opinion
-
Photo for illustration purposes only. – BERNAMA FILE PIX SHAH ALAM – The government needs to strengthen the Malaysia My Second Home (MM2H) programme, especially with the exemption of visas for Chinese and Indian citizens visiting the country starting Dec 1. Universiti Tun Abdul Razak economic expert Emeritus Professor Dr ...
See Details:
Strengthen MM2H programme, promote multiple entry visa
-
GEG element removed from anti-smoking Bill KUALA LUMPUR: The generational end-game (GEG) element has been removed from the revised Control of Smoking Products for Public Health 2023 Bill tabled for the first reading in the Dewan Rakyat on Tuesday (Nov 28). This is as the Health Ministry tries for the ...
See Details:
GEG element removed from anti-smoking Bill
-
-
-
KUALA LUMPUR (Nov 28): National carrier Malaysia Airlines Bhd has launched its year-end sale with ticket prices starting from RM79 to domestic destinations and from RM229 to international destinations, for travellers who book flights between Nov 28 and Dec 11 this year. In a statement, Malaysia Airlines said all-in one-way Economy Class ...
See Details:
Malaysia Airlines launches year-end sale
-
KUALA LUMPUR (Nov 28): National carrier Malaysia Airlines Bhd has launched its year-end sale with ticket prices starting from RM79 to domestic destinations and from RM229 to international destinations, for travellers who book flights between Nov 28 and Dec 11 this year. In a statement, Malaysia Airlines said all-in one-way Economy Class ...
See Details:
Dr M accuses govt of bribery over allocations
-
KUALA LUMPUR (Nov 28): National carrier Malaysia Airlines Bhd has launched its year-end sale with ticket prices starting from RM79 to domestic destinations and from RM229 to international destinations, for travellers who book flights between Nov 28 and Dec 11 this year. In a statement, Malaysia Airlines said all-in one-way Economy Class ...
See Details:
Malaysia to check if the Netherlands still keen to send flood experts
-
KUALA LUMPUR (Nov 28): National carrier Malaysia Airlines Bhd has launched its year-end sale with ticket prices starting from RM79 to domestic destinations and from RM229 to international destinations, for travellers who book flights between Nov 28 and Dec 11 this year. In a statement, Malaysia Airlines said all-in one-way Economy Class ...
See Details:
Appeals court to rule in Isa’s graft case on Jan 31
-
KUALA LUMPUR (Nov 28): National carrier Malaysia Airlines Bhd has launched its year-end sale with ticket prices starting from RM79 to domestic destinations and from RM229 to international destinations, for travellers who book flights between Nov 28 and Dec 11 this year. In a statement, Malaysia Airlines said all-in one-way Economy Class ...
See Details:
Elephants Trample On Axia With Family Of Three Inside
-
KUALA LUMPUR (Nov 28): National carrier Malaysia Airlines Bhd has launched its year-end sale with ticket prices starting from RM79 to domestic destinations and from RM229 to international destinations, for travellers who book flights between Nov 28 and Dec 11 this year. In a statement, Malaysia Airlines said all-in one-way Economy Class ...
See Details:
Sirul fitted with monitoring device
-
KUALA LUMPUR (Nov 28): National carrier Malaysia Airlines Bhd has launched its year-end sale with ticket prices starting from RM79 to domestic destinations and from RM229 to international destinations, for travellers who book flights between Nov 28 and Dec 11 this year. In a statement, Malaysia Airlines said all-in one-way Economy Class ...
See Details:
Nigerian airliner lands at wrong airport
OTHER NEWS
THOSE looking for fresh produce may find themselves spoilt for choice at the biggest wet market in Klang, but visitors to the place say the condition of the facilities and ...
Read more »
Olive Grove is the first-ever gated-and-guarded development in Bercham, Ipoh with 24-hour security. IPOH: YTL Land and Development Bhd announced that Phase 1 of Olive Grove is fully sold while ...
Read more »
Screenshots of a video showing a teenager pointing a knife at an elderly e-hailing driver. PETALING JAYA: Police have arrested a 13-year-old boy for holding an elderly e-hailing driver at ...
Read more »
Sprint Highway’s Semantan To KL Slip Road Fully Closed Until Dec 31 If you’re a regular user of the Sprint expressway, you’ll need to do some planning for your trips ...
Read more »
Genshin Impact Version 4.3 Leak Showcases Update to Domains New leaks reveals a quality-of-life update to Domains in Genshin Impact, making it easier for players to repeat and farm resources. ...
Read more »
CG Computers will host the Urban Republic (UR) Warehouse Clearance from 30 November to 3 December at the Atria Shopping Gallery in Petaling Jaya. During the event, visitor can get ...
Read more »
Photo for illustrative purposes only – 123RF KUALA LUMPUR – Hyperinflation has never happened in Malaysia and the government hopes it will never happen, according to the Economy Ministry. It ...
Read more »