Photo - microLEAP
play_arrow
View
53583

microLEAP

Islamic & Conventional Peer-to-Peer (P2P) Financing Platform

Malaysia
Market: Services, Financial services
Stage of the project: Operating business

Date of last change: 05.09.2021
Show contacts
8
equalizer from 2000
help
Calculated and estimated occupancy of the project (more about ratings)
My rating
1
2
3
4
5
6
7
8
9
10
Average rating:
 

Idea

P2P (Peer-to-Peer) Financing is an alternative financing tool that allows Issuers (borrowers) to obtain financing from Investors (lenders), without having to go through a financial institution. Therefore, it is both an alternative financing product as well as an alternative investment product at the same time.

A proudly Malaysian fintech platform, microLEAP focuses on the micro-enterprise (MSME) sectors, as well as being the first Securities Commission Malaysia (SC) licensed Recognised Market Operator (RMO) that offers both Islamic and Conventional financing on the same platform.

Current Status

microLEAP Traction + Current-Status as at 20th August :

Registered Users: 6,714 (25% Month-on-Month (MoM) Growth)
P2P Investors: 1,264 (22% MoM Growth)
Funding Disbursed: RM 4,046,500 (43% MoM Growth)

Default Rate: 0%
Over RM 3.9Mil Of Islamic Funding Disbursed

Problem or Opportunity

According to the Securities Commission Malaysia (SC), there's a RM80 billion MSME Funding Gap in Malaysia:

(i) Lack of access:
- Banks' credit criteria are too stringent
- Outreach to rural areas difficult

(ii) Cost vs Revenue per loan/financing structure:
- Small loans are too expensive for Banks
- Banks target larger, more profitable loans

Solution (product or service)

microLEAP aims to help plug that MSME Funding Gap:

(i) Low Customer Acquisition Costs (CAC):
- Focus on technology - application, KYC, payments, drawdown are all performed online.

(ii) Fewer Budget Constraints:
- Due to our relatively lower costs, we can have a wider reach, as well as being able to scale up quickly.

(iii) Target the underserved
- Increase Financial Inclusion by giving access to credit, as well as microinsurance at no extra costs to microLEAP's Issuers/Borrowers, for microenterprises / MSMEs

(iv) Malaysia ripe for Digital Financial Services:
- Smartphone Penetration
2017 vs 2018
75.9% 78%
- Internet Penetration
2017 vs 2018
76.9% 87.4%

*Sources:
WeAreSocial, Hootsuite (2019)
Malaysian Communications & Multimedia Commission (MCMC), 2018

Competitors

Unique Features why microLEAP ticks all the boxes (amongst all our current P2P Players/Platforms):

Involved in all things Islamic and microfinance
Moving towards Islamic SME Financing with microLEAP+
Online video training on basic debt management & book-keeping, as well as our mitigation measure of providing Personal Accident (PA) Insurance, for all microLEAP Issuers/Borrowers, at zero costs to both our respective Issuers (MSMEs) and P2P Investors.

In terms of the Financing Landscape as a whole:
(microLEAP vs Banks vs Licensed Money Lenders vs Microfinance Institutions)

We're the Best-in-Class in terms of:
- Being a fully-online/digital end-to-end Islamic & Conventional Financing Solution
- Our Ease of Access + Credit Criteria Evaluation (both Traditional, coupled with our Alternative Credit Scoring Mechanisms such as Psychometric Testing, all via online means) makes us a proper & viable Financing, and Investment, option/tool.
- Speed/Process Time is much shorter (average beginning-to-end process time is usually two weeks) as compared to Banks, Licensed Money Lenders, as well as Microfinance Institutions (1-3 months on average).

Advantages or differentiators

microLEAP Features:
- Microenterprise / B40* focused: RM1,000 to RM50,000 Islamic & Conventional P2P Financing
- Minimum P2P investment of RM50 only with
returns of 12-18% pa

New microLEAP+ Islamic Product Offerings:
microLEAP+ was launched microLEAP+ in June 2021 where we will look to finance larger amounts including -
- Islamic P2P financing for SMEs / tech companies, up to RM500,000 per Investment Note, via our key partnership with the Malaysian Technology Development Corporation (MTDC), etc
- Islamic (Collateralised) Car Dealer P2P (ICD) financing up to RM300,000 per Investment Note
- Islamic Invoice P2P Financing (IIP) up to RM500,000 per Investment Note
- Islamic Grant Financing (IGF): Investment Note size: RM20k - 300k. Short-term bridge financing (1 - 3 months) secured by Government grants

Safety of Investments
- Funds held in Trust Accounts
- All Issuers (borrowers) have a Guarantor
- Issuers covered by Key Person PA Insurance - payout to P2P Investors
- More encompassing/strict credit-risk criteria - which includes psychometric testing
- All microLEAP Issuers must pass their online video accounting training before receiving their Financing
- Secured Shariah-Compliant/Islamic Financing Product Offerings (ICD, IIP, etc)
- Regulated by the Securities Commission Malaysia

*B40: Bottom 40% Income Group

Money will be spent on

Pre Series A:
USD X, XXX, XXX (RM XX-XX, XXX, XXX)
(Half to Set-up and Regulatory Costs, with the balance to A&P and Software Enhancement)

Immediate Requirements:
- Look for more strategic corporate and institutional partners to build a track record in Malaysia.
- Start looking for strategic partners to grow into Indonesia

Team or Management

Incubation/Acceleration programs accomplishment

Top 11 Teams in 1337 Ventures Alpha Startups: Fintech Edition (2018)
Top 18 Teams in UNCDF's Financial Innovation Lab (FinLab) B40 Challenge (2019)
Top 10 Startups for Cradle's Coach and Grow (CGP) Investment Readiness Programme (2020/2021)
Top 3 Startups for Cradle's Coach and Grow (CGP) CGP5 Cohort (2020/2021)

Won the competition and other awards

Cradle's CGP Industry Recognition Award for Fintech (2021)
Unicorn Pitches Startup Battles - Malaysia - Winner (2021)

Photos

Photo 1 - Islamic & Conventional Peer-to-Peer (P2P) Financing Platform

Product Video

5,00
1
2
3
4
5
4 voices
Sign in/Sign up
arrow_back
EN
more_horiz
close
visibility504
star10
Add to favorites
Delete from favorites
share
close
thumb_up20
Like
Unlike
Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video