Fundaztic, an online marketplace for P2P financing, has announced that it will be raising RM3 million (approximately US$722,000) via pitchIN, an equity crowdfunding (ECF) platform.

The campaign will be launched on October 17, 2018.

Kristine Ng, CEO of Peoplender, 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 money will be used to grow Fundaztic’s team in order to increase penetration in the SME markets, while maintaining the quality of notes raised. A portion of the funds will also go into developing its own secondary market to allow for investors to trade notes before its maturity to enable them to cash out earlier if needed.

Ng added Fundaztic also intends to become a public-listed company in the near future.

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Talking about the fundraising plans, Ng commented that while the company could’ve secured funding through VCs and PEs, it opted for ECF to allow the common public to participate in in its growth journey. She also says by involving customers in its journey will convert them into brand advocates.

Sam Shafie, CEO of pitchIN, added: “Based on our experience and our record of 100 per cent success rate, we are optimistic that the 3 million shares will be snapped up within a short span of perhaps in one to two 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.”

Owned and operated by Peoplender Sdn Bhd (a Securities Commission-licenced company), Fundaztic aims to leverage technology to enhance access to both financing and investment for businesses and individuals with low entry barriers. The platform enables issuers to access easy financing through a simple online application process, while investors  are able to provide funds to multiple Investment Notes in exchange for attractive returns of investments.

In June this year, Fundaztic entered into a collaborative agreement with OCBC Bank to enhance access to financing for micro, small and new businesses.

Launched in 2012, pitchIN is a registered ECF operator. To date, it has successfully funded 22 deals, including SalesCandy, MyCash Online, and Babydash. pitchIN has raised over RM24 million to date and enabled more than one thousand investors to take equity in fast growing Malaysian companies.

pitchIN also operates a rewards equity crowdfunding platform and has championed crowdfunding in Malaysia since 2012.