Malaysia Debt Ventures Berhad (MDV), in a statement today, announced that ten (10) technology start-ups will be the first cohort of technology companies confirmed to receive RM13.75 million in cumulative financing under MDV’s Technology Start-Ups Funding Relief Facility (TSFRF) programme.
The technology start-ups include Superceed (M) Sdn Bhd, Duchess Mercantiles Sdn Bhd, Naluri Hidup Sdn Bhd, Enlinea Sdn Bhd, Mobi Asia Sdn Bhd, Sbunny Group Sdn Bhd, Voltron Malaysia Sdn Bhd, Soft Solvers Sdn Bhd, Cidekick Sdn Bhd and Pixelbyte Sdn Bhd, who will each receive financing between RM200,000 to RM2.50 million.
The companies are among sixty-six (66) technology start-ups that had been assessed and endorsed by the programme’s dedicated pre-screening committee, consisting of representatives from MDV, the Malaysian Global Innovation & Creativity Centre (MaGIC), the Malaysia Venture Capital Management Berhad (MAVCAP) and Cradle Fund Sdn Bhd (Cradle), from a total of 142 applications received since the facility was first deployed.
MDV’s Chairman, Khairul Azwan Harun, said that MDV is pleased with the overwhelming response that it had received from technology start-ups who were keen to explore financing opportunities under the TSFRF programme.
“MDV has been entrusted by the Government to assist technology start-ups that are badly hit by the COVID-19 pandemic through the TSFRF programme. As such, we intend to fulfil this trust by ensuring that we continue to provide immediate, affordable and targeted cash flow support for technology start-ups that are impacted by the current adverse economic conditions and funding disruptions to ensure their continued resilience, recovery and growth during this trying time.”
Azwan added that it is pertinent for Malaysia’s technology start-ups to continue to grow and expand regionally as well as globally, and to continue to contribute to the technology sector and facilitate the development of other start-ups. This is to ensure that, despite the present economic setbacks, the Malaysian start-up ecosystem is still able to flourish, thus reaffirming the position of Malaysia as one of the region’s leading start-up hub.
Further on the TSFRF programme, Nizam Mohamed Nadzri, MDV’s Chief Executive Officer (CEO) said that at the moment, twenty-seven (27) applications have already been approved by MDV’s financing board with a total approved amount of RM34.05 million, of which ten companies have already confirmed their acceptance of the financing.
“Our funding via the TSFRF programme will be able to provide these companies with cashflow relief for their working capital given the current economic challenges faced by businesses especially start-ups, who are more vulnerable to revenue slowdowns that affect their cash flow,” explained Nizam.
The TSFRF programme was introduced by MDV with support from the Ministry of Science Technology & Innovation (MOSTI) and the Ministry of Finance (MOF) by offering up to RM100.00 million in funds for Venture Capital (VC) or Government agency-backed Technology start-ups that are impacted by the COVID-19 outbreak. The facility will be offered at an interest rate of 3.50% per annum on the amount outstanding. The TSFRF is similar to a revolving credit facility, which means that disbursement can be requested on demand or based on a 6 month rolling cash flow requirements per applicant. Outstanding balances of the principal can be rolled-over semi-annually, providing flexibility in managing repayment.
This article was originally published on BusinessToday.
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