Leap of Faith
Tunku Danny Nasaifuddin of Microleap spells out the impact of investing in micro enterprises during a pandemic
Tunku Danny Nasaifuddin of Microleap spells out the impact of investing in micro enterprises
“There was this pisang goreng seller in Johor who had been operating for over 30 years,” begins Tunku Danny Nasaifuddin Mudzaffar. “She went to a bank to apply for a loan and her application was declined. And the reason she was declined was because she was only registered with the Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia or SSM) for two years at the time she applied.”
According to Tunku Danny, most banks would typically only consider enterprises that have been registered with SSM for at least three years. “So, this was a stall that was making a profit but declined for a loan based on a technicality,” he adds. Thankfully, the stall owner’s story didn’t end there as she eventually found an alternative source of funding in Microleap, a peerto-peer (P2P), Syariah-compliant microfinancing platform headed by Tunku Danny, a former banker at Standard Chartered Bank in London. “Within two weeks, she raised RM40,000, which she used to renovate her stall. She’s doing really well today,” he smiles.
The son of gregarious royal couple Tunku Dara Tunku Tan Sri Naquiah and Tunku Datuk Mudzaffar Tunku Mustapha, the more low-key Tunku Danny combined his keen interest in fintech with a desire to impact businesses underserved by conventional banks, namely ‘micro’ enterprises run by B40 business owners. From sundry shop owners to roadside stalls selling kuih-muih and other street foods, these are mom-and-pop businesses that are
a familiar fixture in Malaysia— and the very demographic that Microleap aims to support.
Launched in October 2019, Microleap has already helped over 70 micro businesses acquire muchneeded funds via a crowd-funding model. Microleap is regulated by the Securities Commission, connecting micro entrepreneurs with investors who can contribute as little as RM50 on the platform. Investors, meanwhile, can view applicants who are in need of funds on Microleap, or refer to the platform’s proprietary credit algorithm to help them select a business with a credit risk score that suits their investment preferences. “We’re not here to compete with banks,” says Tunku Danny. “We’re providing a service to micro enterprises who cannot get financing from banks. Microleap has always positioned itself as an alternative financing player, democratising the whole investment process. With as little RM50, you can invest in a small enterprise and help your local kedai runcit. Investors get good returns, anywhere from 10 to 15 per cent per annum; plus, it’s an opportunity for them to help B40owned enterprises.” At a time when many small businesses in Malaysia are in urgent need of more flexible and digitally accessible financing options to weather the challenges of a pandemic, Microleap’s impact on B40 entrepreneurs is undeniable. “We also distribute funds to small businesses promptly; the quickest we’ve ever done was RM50,000 in about 15 minutes,” notes Tunku Danny.
“Microleap is all about democratising the investment process. With as little RM50, you can invest in a small enterprise and help local businesses”