PitchIN, Malaysia’s leading ECF (equity crowdfunding) platform, recently successfully concluded its first ever fundraising exercise. At the end of its equity crowdfunding campaign on Leet Capital, pitchIN chose to accept RM5.5 million from some 322 investors.
Delighted with the response from investors, pitchIn CEO Sam Shafie said: “I thank the investors for their support in making our deal one of the largest ECF campaigns in Malaysia.”
“Our campaign target was RM5 million. The campaign ended up with around RM5.65 million raised. To not disappoint investors, pitchIN accepted all investors but returned some of the funds to keep our fundraising amount to RM5.5 million,” said Sam.
“We take this success as a vote of confidence in pitchIN as well as the prospects of the equity crowdfunding and digital investments industry. We are confident about the direction that we are taking.
“PitchIN is a fintech and the market opportunity is huge. There are over 900,000 SMEs in Malaysia alone. What we have done to date is just the beginning, there is lots of potential to unlock.”
Meanwhile pitchIN chief strategy officer Kashminder Singh added: “We are overwhelmed by the support shown for our first ever fundraising campaign. In 2015, we launched pitchIN with our own funds because we believed in the importance of democratising the fundraising industry.”
“We are grateful that we have been able to create a platform that has helped 112 SMEs and startups raise over RM177 million from over 5,500 investors. These new funds will enable us to offer our services to more SMEs and startups.”
The 322 investors consisted of retail, angel and sophisticated investors and included several notable investors.
Among participants in the ECF campaign were serial entrepreneur and startup investor Ganesh Kumar Bangah, ex MCMC Chairman Sharil Tarmizi, co-founder of publicly listed Aimflex Bhd Chan Kok San and Shellys Marketing Sdn Bhd managing director Simpson Wong Kean Hin. Shellys operates the XES chain of shoe outlets.
Ganesh (pic) believes that challenges can be solved through entrepreneurship: “My life mission is in doing my part to build the next generation of entrepreneurs. I believe the best way to make the world a better place is to get entrepreneurs to solve the world’s problems. The bigger the problem solved, so should the bigger the opportunity and reward.”
“Sam and Kash have a proven track record in successfully raising early stage funding for entrepreneurs. pitchIN today has emerged as one of the most effective fund-raising options for entrepreneurs and SMEs in Malaysia. I strongly believe that pitchIN has become the organization that has most positively contributed to solving this issue in Malaysia. I have chosen to invest because I believe that pitchIN has an even larger role to play in the funding ecosystem and look forward to supporting them in their journey,” added Ganesh.
Meanwhile Dato Sharil said: “I have known Sam and Kash for many years across various capacities and have seen how they have grown pitchIN to what it is today. So, when the opportunity to invest came up, I did not hesitate. I look forward to seeing pitchIN growing bigger and offering new services.”
Chan Kok San said, “I checked out their campaign offer and was impressed with their performance. pitchIN is well run and achieved profitability in just a few years. The company has great prospects and I look forward to seeing them grow even more in the years to come.”
Simpson Wong said that he was happy to participate in the equity crowdfunding campaign. “I run a fast growing company and when I looked at pitchIN, I could see that they are leading in their industry and has good prospects. Furthermore, the pitchIN ECF platform is very useful to SMEs and I am happy to be able to help fund pitchIN’s expansion, which will contribute to the growth of Malaysian SME companies.”
Alongside this RM5.5 million, pitchIN is also in the final stages of raising an additional RM5 million from institutional investors.
Sam explains, “We set out to raise RM10 million in total, of which RM5 million was allocated for institutional investors. The investors have been identified and we expect to close that amount fairly soon.”
This fundraise will enable pitchIN to expand its operations to serve more businesses and investors as well as offer new services.
PitchIN will open a secondary market for its ECF platform later this year. It has also applied for a license to operate an IEO platform. It also plans to launch more services in the next few years.