Asia

3 Marketplaces Join Forces to Form Crowdfunding Alliance in Singapore

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Today marks a significant chapter in Singapore’s fast-growing crowdfunding industry, as crowdfunding platforms CoAssets, FundedByMe, and New Union announce an alliance that sees the three platforms combining forces to develop the local and regional crowdfunding industry.

singapore-flagAll three platforms – CoAssets, FundedByMe, and New Union – today have international reach of investors and campaigns. Together the alliance recorded over S$200 million dollars raised through crowdfunding campaigns in 2014, with growth expected to accelerate over 2015.

Said Getty Goh, founder and CEO of CoAssets, “As an individual company, there is only so much we can do. Hence, I am excited and honored to be a part of this three-way alliance. However, this is just a first step and we hope that more stakeholders will join this alliance so that it can eventually pave the way for Fintech trade association. As Fintech is a burgeoning sector, the best way forward is to come together and engage the authorities collectively. Akin to the Singapore Venture Capitalist and Private Equity Association (SVCA) or Real Estate Developers Association of Singapore (REDAS), having a Fintech association is not only a good way to promote self-governance, it can also bring greater awareness to what this industry is all about.”

“We are excited about this development with likeminded partners in the industry. There’s so much more we can do together, once we focus on developing the market here and globally in 2015. Crowdfunding is definitely on an uptrend –– we experienced over 600% growth in 2014 year-on-year –– and expect that the next wave of growth will exponential especially considering this alliance, coupled with surging Asian demand,” said Daniel Daboczy, founder and CEO of FundedByMe.

“Technology and the world-wide-web have become irreplaceable to our daily life, and every day business — and today, this alliance represents the emerging wave of financial services that meet crucial needs in the business community. Our commitment is to work closely with government agencies and financial institutions to spearhead a progressive and trustworthy crowdfunding environment,” Jeremiah Lee, Founder and Managing Director of New Union.

The three platforms plan to launch their first combined crowdfunding project in Q3 of this year, as well as joint conferences over the months following their alliance announcement. Continue reading →

Milaap Raises 1.1M US$

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P2P microfinance service Milaap (see earlier coverage on P2P-Banking.com) raised 1.1 million US$ from Jungle Ventures (Singapore), Toivo Annus,Lionrock Capital, Jayesh Parekh and Unitus Seed Fund. The current round of funds will be utilized to expand engineering and marketing investments for enhancing the online product experience, and to invest in scaling up marketing and outreach efforts.

Milaap says that so far 100% of the microfinance loans originated have been paid back.

Kiva Enters India

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Today Kiva expanded its service to borrowers in India. India is the second most populous country and the largest democracy in Asia. India is an emerging economy (part of the aspiring fast growing so-called BRICS countries), but growth has slowed over the past years.

India is still country with large differences. Kiva states that ‘With more than 32% of India’s population falling below the international poverty line and 68% living on less than US$2 a day, the country is in dire need of responsible, affordable sources of capital. But India has a complex history with microfinance, leaving many financial institutions unable or unwilling to serve poor and socially-excluded borrowers. Recognizing this need and opportunity, Kiva wanted to give the global lending community a simple, ethical channel to support India’s most geographically-isolated, underserved and vulnerable groups. These groups include widows, the disabled, leprosy-affected families and many more who have had virtually no chance at making a sustainable living for themselves before now.‘

To start its p2p microfinance for India Kiva has partnered with 3 MFIs: People’s Forum, Mahashakti Foundation, and WSDS.

To comply with regulation in India loans will have a minimum term of 3 years and there will be no repayments to the lender during the 3 years. More details on Kiva’s country page.

CARE Runs Lendwithcare Microfinance Platform

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CARE International UK runs the p2p microfinance platform Lendwithcare.org. For a minimum investment of 15 GBP anybody can help funding a loan to entrepreneurs in Africa or Asia.

Lendwithcare has partnered with local MFIs in Benin, Togo, Philippines, Cambodia and Indonesia that disburse the loan to the borrower. Lenders do not receive interest. Aside from the default risk (Lendwithcare claims less than 2% bad debt) lenders also bear the currency exchange rate risk. Lenders do fill their account via Paypal or credit card, withdrawels are through Paypal.

Though the concept closely resembles Kiva’s, it is interesting to see the approach used by a long-time established aid and development organisation. The site shows the experience CARE has with marketing and fundraising. It looks much more flashy (at least compared to the old Kiva page).

Lendwithcare was launched in April 2010. Since then 243 loans were funded. At the moment there are about 32 loan request by entrepreneurs listed.