KUALA LUMPUR (Aug 13): Property developer Paramount Corp Bhd has completed its first fintech investment by acquiring a 30% stake in Omegaxis Sdn Bhd, the holding company of Peoplender Sdn Bhd, the operator of peer-to-peer (P2P) financing platform Fundaztic.

In a statement today, Paramount said its wholly-owned subsidiary Magna Intelligent Sdn Bhd had signed a conditional share subscription agreement with P2P Venture Sdn Bhd and Omegaxis on April 15, for a 30% stake in Omegaxis for RM13.7 million.

“Omegaxis has a 63.5% equity stake in Peoplender, a recognised market operator of P2P financing platform Fundaztic. 

“Launched in 2017, Fundaztic serves over 24,000 members, providing financing to over 2,000 start-ups and micro- to small and medium enterprises (MSME), and continues to command a 50% market share in terms of unique issuers served in the Malaysian P2P industry,” it added.

Paramount noted that Fundaztic has a presence in Malaysia and Singapore, with it being the first and only P2P in Malaysia to introduce a secondary market and the first to offer capital protection for investors.

“As of today, Fundaztic is one of only eleven recognised market operators for P2P platforms licensed by the Securities Commission (SC) Malaysia.

“In July 2021, Fundaztic SG Pte Ltd (Peoplender Singapore subsidiary) launched Fundaztic SG, the seventh P2P financing platform in Singapore, after receiving approval from the Monetary Authority of Singapore earlier in the year,” it said.

The group said due to the scalable nature of the Fundaztic business model, Omegaxis would be able to expand regionally in the future.

“Paramount believes there is tremendous room for growth for the P2P financing industry, both in terms of demand for small and medium enterprise (SME) financing, as well as investors seeking higher returns in a low interest rate environment,” the group added.

Paramount noted that its investment in Omegaxis is in line with its five-year (2020-2024) strategic plan to identify new sources of earnings, particularly those in the digital space, to future proof the group for long term sustainability.

Paramount’s share price closed unchanged at 74 sen today, giving the group a market capitalisation of RM458.21 million.

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