Malaysia-based MyCash Online (MC Online), a mobile-based remittance service for unbanked migrants, has launched a campaign on equity crowdfunding (ECF) platform pitchIN to raise 5 million ringgit ($1.2 million) at a pre-money valuation of 32.21 million ringgit ($7.91 million).
The fundraising is to increase the company’s paid-up capital to 5 million ringgit, which is mandatory to obtain an eMoney licence in Malaysia, news portal e27 reported on Friday.
The eMoney licence will allow MyCash to operate a wallet for the country’s migrant community. It is planning to offer a Visa prepaid card for them as well, according to the report.
“As Malaysia has a significant number of unbanked migrant workers, we believe there will be a huge demand for our wallet and prepaid cards. We will also add remittance services to our wallet. For this, we are signing a partnership with a local remittance giant. We are in the midst of getting necessary approval from the central bank of Malaysia,” co-founder Mehedi Hasan Sumon was quoted as saying.
MyCash delivers financial services including cross-border remittance, online purchasing, mobile top-ups, and bill payments to unbanked migrant workers in their own mother tongue. MyCash’s primary target market is migrant workers in Malaysia and Singapore and the firm is also on track to launching its services in the Middle East as it expands into Qatar in January 2021, according to information on the ECF platform. This will be followed by the European Union market.
In terms of market demographics, 70 per cent of its users are predominantly of Bangladeshi heritage, with the remainder 30 per cent being Nepali, Indian, and Indonesian heritage, the company said.
MyCash’s net loss stood at 833,421 ringgit ($204,619) on the back of a revenue of 52.65 million ringgit ($12.93 million) in 2019. In 2018, its net loss was 457,313 ($112, 288) ringgit, while revenue stood at 35.45 million ringgit ($8.7 million), information on the ECF platform showed.
The company was funded by a successful ECF campaign of 500,000 ringgit ($122,760) through pitchIN in 2017 and 2019. It has also received $290,245 in investment from global early-stage VC Fund 500Startups.