muv and Fundaztic To Offer RM1 Billion Financing To Car Dealers
muv, Malaysia’s largest marketplace for used vehicles, has teamed up with Fundaztic, a peer-to-peer financing platform, to offer RM1 billion in total financing to car dealers.
In this financing programme, car dealers registered with muv can receive a credit line of up to RM200,000 to finance the purchase of used vehicles via muv’s platform. This programme can benefit up to 5,000 authorised used car dealers.
Fundaztic is a peer-to-peer financing tool that is regulated by the Securities Commission Malaysia (SC). It will provide collateral-free financing to muv’s authorised car dealers through crowdfunding for up to 80% of the vehicle’s successfully bidded purchase price. The used car dealers will then pay the interest and principal back to investors through the platform at the end of the funding tenure.
“At muv, we strive to continue innovating our existing processes to enhance value and efficiency for all our stakeholders. This partnership with Fundaztic came about with the intention to empower our dealers by providing them the means to continue expanding their businesses,” said Andy Teh, CEO of muv.
muv has set up a dynamic marketplace for used vehicles, having a focus on establishing the technology to optimise the user’s buying and selling experience. muv mediates an auction three times a week. Together with its latest bidding platform, muvbid, muv offers 24/7 listing with hundreds of vehicles available for bidding on www.muv-x.com.
Small and medium-sized used car dealers often face difficulty securing loans from traditional financing instituitions to buy used vehicles. Banks tend to finance bigger players with an established credit history. Hence, Fundaztic can target micro, small and medium enterprises (MSMEs) and serve as a strategic medium to close this financing gap. Participating registered dealers buying on muv will be able to tap on the benefits of the funding from Fundaztic.
“We want to serve as many MSMEs as possible as we truly believe they make up the backbone of Malaysia’s economy. This collaboration with muv will extend our reach in the automotive industry and introduce a new short term financing option to our investors. It will also help drive home the number one rule of investing; practice diversification.” says Calvin Foo, Acting Chief Executive Officer of Fundaztic.
In the current economic climate, the used car market in Malaysia is expected to chart positive growth.
“We are committed to the growth of this industry, and we will endeavour to do whatever we can to continue supporting the recovery efforts of this industry by continuously addressing the pain points and providing the right solutions for car dealers, partners and consumers alike,” said Andy Teh, CEO of muv.
