MyCash Founders Mehedi Hasan Sumon (L) and Nurol Haq Shamrat

Correction: The earlier version of this article mistakenly put the converted figure as US$556K. Error is regretted.

MyCash Online, a Kuala Lumpur-based fintech startup that offers an online marketplace for migrants in Malaysia, has raised RM1.3M (US$303,564) through equity crowd-funding platform pitchIN.

The round was led by Cradle Fund, a government-backed early-stage fund, through its co-investment exercise, along with a Hong Kong-based co-investor JC Management. Cradle and JC Management together put RM1.2 million (US$280,000) into the startup.

As per a press statement, MyCash’s equity crowdfunding campaign went live on 01 June 2017 and was fully taken up in 24 hours. MyCash is the first fintech company to successfully raise funds through equity crowdfunding in Malaysia.

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MyCash Online is an online marketplace specially designed for massive pools of migrants in the country. It provides a tailor-made platform for the unbanked where they can purchase products and services online without using any bank account, credit cards, or prepaid cards. Users can reload phone credit, pay bills, and buy bus tickets through MyCash.

The startup is now seeking regulatory approval to build and operate innovative remittances and banking services for the same target market. It hopes to become a ‘virtual bank for the unbanked’.

MyCash Online CEO Mehedi Hasan Sumon said: “We will now be able to ramp up our services and do our part to bring our customers into the digital age through innovative services. We launched our business in April 2016. To date, we have served 65,000 unbanked customers and carried out more than 280,000 transactions worth RM4.3 million (US$1 million).”

Also Read: Can crowdfunding transform real estate brokerage in Southeast Asia?

Sam Shafie, CEO of pitchIN, said: “MyCash is yet another company curated by pitchIN that attracted strong interest from investors. pitchIN has consistently brought promising companies with validated business potential to investors. Over the past 12 months, 9 companies have successfully raised over RM6,000,000. We are seeing growing awareness from investors with each successful deal. Investors can look forward to yet more deals as pitchIN will be bringing plenty more deals this year.”

Juliana Jan, Chief Investment Officer at Cradle Fund, said: “We see the potential in MyCash because it addresses customers that most people forget, the migrants. There are more than 3 million migrants in Malaysia and 90 per cent of them do not have access to banks or financial institutions. With the growing digital services available online, we strongly believe that the e-marketplace that MyCash operates provides the infrastructure for these unbankable migrants. Their business model has been proven and this is evident with the traction of over 230,000 in just the first year.”

Cradle Fund recently announced the launch of an investment product called Direct Equity 800 (DEQ800) that is built to help startups receive cash injections of between RM800,000 (US$180,000) and RM300,000 (US$67,000).

Image Credit: MyCash Online