SHAH ALAM, July 17 – Malaysian online loan comparison and services platform LOANPANDA has successfully raised nearly USD295K (RM1.3 million ) from equity crowdfunding (ECF) as it looks to transform the financial services ecosystem in Malaysia. Valued at USD1.8 million (RM8 million), LOANPANDA’s campaign hit its minimum target of RM500,000 in 1 hour, and by the end of the campaign.
The funds have exceeded more than 100% of the initial target to achieve RM1,251,000 in funding. A total of 176 investors have contributed to the funding. The ECF campaign was hosted by MyStartr, an ECF platform licensed by the Securities Commission Malaysia since 2019. As an ECF platform, MyStartr assists startups to scale faster and grow bigger via hosting ECF campaigns that connect startups with investors.
While also offering retail investors a chance to participate in innovative startups at an early stage. In the past 3 years, MyStartr has successfully helped more than 52 startups to secure more than USD18 million (RM80 million) of the total crowdfunding amount. During the 2 years of the pandemic, the Malaysian small and medium-sized enterprises were badly affected. Nicholas, the CEO and founder of LOANPANDA, recalled, “One of my acquaintances, Mr Tan, was having a dilemma due to the cash flow problem.
In his attempt to seek financing, he had a hard time understanding the banks’ financing information. Not knowing how to compare his financing options, he contacted a so-called ‘banker’ for help but to find himself in a more helpless situation after knowing he was scammed out of his money. Disappointed by the unfortunate experience, Nicholas was determined to put an end to online loan fraud. Drawing on his financial knowledge and experience, he gathered a group of like-minded partners to establish LOANPANDA as the Malaysian online loan comparison and services platform to create an ecosystem where “Everyone Can Loan” as its tagline suggests.
LOANPANDA aims to create a more transparent and accessible financial services platform for people to easily understand, compare and choose the best financial products on the market that best suit their needs. It seeks to help people make better financial decisions by providing professional analysis and financial calculator comparison tools. In addition, the platform also offers personalised financial consultation services to help customers create financial plans tailored to meet their financial needs or goals.
The consultation service will be supported by its network of affiliated financial consultants – whose credentials and experience have been carefully vetted and verified before they are allowed to join LOANPANDA’s network. Nicholas said LOANPANDA intends to use the funds to further enhance the platform’s technological capabilities (20%), expand its user base (50%) and support its operation and growth (50%) for the next 12 to 18 months.