Capbay expands $49 M in growth financing for Malaysian ICT startups in partnership with MDEC
Through the MD Technology Financing Program, Malaysian FinTech business Bay Smart Capital Ventures Sdn Bhd (CapBay) is working with the Malaysia Digital Economy Corporation (MDEC) to increase Malaysia Digital (MD) Status companies’ access to growth financing.
The project, which is supported by a MYR 200 million ($49.11 million) finance pool, is intended to assist business expansion and the ongoing development of Malaysia’s digital economy, the two said in a statement on Thursday.
The program improves capital availability for qualified MD Status companies by utilizing CapBay’s financing experience in conjunction with MDEC’s Malaysia Digital ecosystem.
It is intended to assist high-potential technology firms whose asset-light business strategies may make it difficult for them to obtain traditional financing.
Financing up to MYR 3 million, with repayment terms of up to 60 months, rates as low as 6 percent annually, and a six-month grace period, is available to qualified businesses having MD Status.
Through a completely digital application process, the initiative is accessible to both well-established technological companies and early-stage start-ups, including organizations that have been founded for as little as six months.
CapBay’s artificial intelligence (AI)-powered credit evaluation platform, which assesses applicants based on business fundamentals and growth prospects rather than tangible collateral, supports financing decisions.
The framework was created especially for tech firms whose main assets are proprietary systems, talent, and intellectual property.
nearly 2,600 businesses have benefited from nearly RM5.6 billion in financing made possible by CapBay since 2016.
“Conventional credit frameworks often overlook technology companies because their assets are intellectual,
“The MD Technology Financing Program addresses this by basing credit decisions on business fundamentals and growth trajectory rather than physical collateral, which aligns with how tech companies are actually structured,” said Ang Xing Xian, Co-Founder and Group Chief Executive Officer of CapBay.
“We are proud to partner with MDEC to welcome early-stage start-ups from just six months of incorporation, offering non-dilutive debt financing at a stage where equity is often their only option, and broadening the financing options available to Malaysia’s technology sector,” he added.
According to Anuar Fariz Fadzil, chief executive officer of MDEC, technology companies still need access to growth capital in order to develop, scale, and compete in the increasingly dynamic digital market.
According to him, MDEC keeps bolstering the digital ecosystem through the MD Technology Financing Program, which links Malaysian tech firms with strategic funding options that help them achieve their expansion goals.
