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  • Pamela Choo

IFN: Capsphere spurs Malaysian investors to join SME revolution

Updated: Sep 29

Islamic banking and finance has seen unprecedented growth globally. Capsphere, Malaysian peer-to-peer (P2P) financing platform, now sets its eyes on the Islamic financing market.


The Securities Commission registered platform has announced its Shariah compliant financing solution based on Commodity Murabahah (via Tawarruq arrangement) for small and medium enterprises (SMEs).


With Malaysia being the cornerstone that continues to champion Islamic financing, the opportunity to develop Shariah financing has captivated other developing industries.



A promising future for SMEs and investors

Yoon Jun Jie, Founder and CEO of Capsphere, foresees continuous growth in the segment in which Capsphere can potentially play a role in. He said that ‘Malaysia is a market leader in Islamic finance based on the Global Islamic Economy Indicator (GIEI), while the Global Islamic Fintech (GIFT) index reveals that the demand for Shariah investment products will continue to rise.’ ‘Capsphere’s latest offering, Shariah compliant financing solutions, will present more opportunities to all investors to partake in Shariah and Non-Shariah Investment.’


Introducing Asset-Based Shariah Financing


Capsphere is an asset-based financing platform that helps small-to-medium enterprises (SMEs) obtain funding by matching them with a pool of keen investors.


Understanding the complexities and sanctity of Islamic financing, Capsphere is working closely with Shariah advisers, Masryef Advisory Sdn Bhd, when it comes to matters in accordance to Islamic governance. Khairil Anuar Mohd Noor, Principal at Masryef Advisory states “We are proud to play a role and be part of Capshere’s Islamic finance journey. We also believe that Capshere’s Islamic finance platform would give micro, small and medium size business enterprises access to an alternative mode of financing that is not only fast and affordable, but also aligned with their business needs. In addition, the platform enables the Islamic investors to directly participate in the risk and reward of the business without having to be actively involved in the day to day running of the business”.

Benefits for the investors


In order to mitigate risk, the platform provides assurance to investors through collateralising valuable assets as security for each financing, bringing ‘asset-based financing’ into effect.


Asset-Based Shariah Financing is a type of financing that is provided using the Shariah contract of Commodity Murabahah (via Tawarruq arrangement), where SMEs offer an Islamic Investment Note that is collateralised by an asset.



Benefits for SME businesses


Asset-based financing allows SMEs to enjoy competitive rates, along with RM1 million worth of financing options as well as up to 3-year tenures for more flexibility.


On top of that, Capsphere’s new Shariah Financing solution will complement its current suite of financing solutions (Term, Invoice and Contract), providing more options to SMEs to improve their working capital and business expansion activities.

Both SME business and investor are matched through Capsphere’s platform, where the investor will find an Investment Note offered by the business in question.

A wide array of opportunities within Islamic finance means financial instruments and technology will continually evolve, while its key fundamentals and principles are held. As an asset-based financing platform, Capsphere takes steps to ensure a secure environment for fresh as well as seasoned investors. To know more about Capsphere’s investment ventures, visit https://www.capsphere.com.my or register an account here https://bit.ly/3yeFbZf

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