Expects Shares of RM3 Million to be Oversubscribed
For the very first time, two crowdfunding platforms that are regulated as Recognised Market Operators (RMO) by the Securities Commission (SC) are forming an alliance with the aim of boosting awareness, trust and acceptance in the industry besides offering exciting fundable deals to investors. The alliance will see Fundaztic, the peer-to-peer (P2P) financing market leader in terms of number of SMEs raise funds via pitchIN, the market leader in equity crowdfunding (ECF).
Commenting on the campaign, Ms. Kristine Ng, Chief Executive Officer, Peoplender Sdn Bhd, the company that owns and manages Fundaztic said, “We are confident that the 3 million shares – the maximum allowed under the ECF Guidelines – that will be made available through equity crowdfunding will receive overwhelming response as preliminary indication of interest is already nearing 11 million.”
The indication observed is based on the pre-marketing exercises that were conducted in the open market which attracted huge interest amongst its Elite Club members, network of affliates and potential strategic sophisticated investors.
“This tremendous interest is testimonial of trust towards the performance of Fundaztic currently and projections for the future. We take this as motivation to spur growth and host even more Notes each week to underserved but viable SMEs.” added Ng.
Addressing the guests and media at the event, Mr. Sam Shafie, Chief Executive Officer of Pitch Platforms Sdn Bhd, added, “Based on our experience and our record of 100% success rate, we are optimistic that the 3 million shares will be snapped up within a short span of perhaps between 1 – 2 hours as Fundaztic has already established proven track records in terms of earnings growth as well as growth in their member base and Notes hosted each week.”
“PitchIN is very selective in the campaigns that we choose to host and this is why the 22 campaigns that have gone live all managed to raise the funding required and are all growing their businesses as projected. We are very pleased to form this alliance with Peoplender, as it has disbursed approximately RM28 million to over 300 SMEs to-date with a default rate of about 1.3% only.” We are happy that they have chosen to raise funds using ECF and pitchIN in specific because it provides a strong synergistic effect for the entire alternative funding eco-system,” further commented Sam.
Another major innovation that Fundaztic will be coming up with would be the secondary market which allows for investors to trade their investments within the platform for early exits. This would mean that although an investor had invested in a 36 months Note, once the secondary market is available on Fundaztic, if the investor needs emergency funds, it is possible to trade the Note anytime within the funding tenure. “This feature is important as it adds flexibility to investing on Fundaztic,” explains Kristine.
Peoplender started with a paid up capital of RM5 million and, along with private placements to sophisticated investors, this is expected to increase to RM15.5 million by end of the ECF campaign period.