Singaporean P2P lending startup Capital Match Holdings Pte. Ltd. has announced it has raised S$1 million in its Series-A round of venture financing.
The round was led by Innosight Ventures and included previous investors Crystal Horse Investments and CE-Tech Invest. The funds will be used for product development, marketing and sales activities.
Capital Match operates Singapore’s leading online lending platform for businesses. Through the Capital Match platform, small and medium enterprises (SMEs) can access growth and working capital from investors who are looking for attractive rates of return.
The platform enables investors to view loan requests along with professional credit assessment of each loan. They select the loans in which they want to participate. As loans are made, the platform provides end-to-end services including payment processing, debt collection and reporting.
In Singapore, SMEs represent 99% of businesses and employ 70% of the workforce, yet collectively they only receive 27% of business credit. Traditional banks focus their attention on large multi-national business customers. At the same time, individual investors looking for attractive rates of return have few options.
Capital Match offers a great value proposition to both sides by facilitating the flow of capital from investors to SME borrowers, generating fixed income returns to the former and providing working capital to the latter.
Along with the Series-A investment, Innosight Ventures’ partner Pete Bonee is joining the Board of Directors of Capital Match.
Bonee said, “Capital Match has identified an opportunity to solve a big market inefficiency with an innovative technology solution. We are also very impressed with the team. I am looking forward to supporting them and being part of this great company.”
Pawel Kuznicki, founder and CEO of Capital Match, said, “The peer-to-peer lending model has been taking off around the world. We are thrilled to be bringing this model to Singapore and serving the needs of SMEs in this dynamic economy. We are also pleased to get the endorsement and support of a great set of investors in this Series-A round.”
