MyCash Online, a fintech startup that is providing online services to the unbanked has raised RM1.3M in 24 hours in their equity crowdfunding campaign on pitchIN. Cradle Fund Sdn Bhd (Cradle) led the funding round through their co-investment exercise along with a Hong Kong based co-investor.
MyCash Online is an online platform that offers online purchasing services for migrant workers in Malaysia. Users can reload phone credit, pay bills, buy bus tickets, and more. MyCash Online is also seeking regulatory approval to build and operate innovative remittances and banking services for the same target market. The company hopes to become a ‘virtual bank for the unbanked’.
In a press statement today, the MyCash Online equity crowdfunding (ECF) campaign went live on 1st June 2017 and was fully taken up in 24 hours. Cradle and co-investor JC Management took up RM1.2M while other investors snapped up the remaining RM100K.
MyCash Online is reportedly the first fintech company to successfully raise funds through equity crowdfunding in Malaysia.
Grateful for the support received, MyCash Online CEO Mehedi Hasan Sumo thanked Cradle and JC Management for participating as lead investors.
“Their investment is a validation of the potential of the market we are addressing. 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.” he said.
Launched in April 2016, MyCash Online has reportedly served 65,000 unbanked customers and carried out more than 280,000 transactions worth RM4.3 Million.
Juliana Jan, Cradle Chief Investment Officer 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% 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.