There has been a significant decline in funding for companies, particularly for small businesses and startups, as financial markets and investors are still reeling from the impact of the Covid-19 pandemic.
Despite the challenging environment, some companies have still managed to raise the capital for business expansion.
Malaysian e-commerce solution provider, Everpeaks, is one. It successfully raised RM1.44 million (US$339,912) via equity crowdfunding (ECF) platform, pitchIN.
According to its press release, the company secured investments from 48 investors for 25.17% of total equity offered. The highest individual investment was for RM1 million (US$235,890).
Companies across the globe have experienced major changes in business conditions amid the Covid-19 outbreak, says Joachim Sebastian, CEO and founder of Everpeaks.
The epidemic has changed societal trends, consumer behaviour and consumption patterns which have resulted in the growth on online channels with businesses shifting to invest heavily in digital transformation and transitioning into new e-commerce entities.
“A shift in both consumer behaviour and manufacturing has opened up new opportunities within the manufacturer-to-consumer (M2C) market,” says Joachim.
With the capital, Everpeaks hopes to provide access for European and US brands to the Southeast Asian market by making Malaysia their regional distribution hub.
The company is looking to do so through its ‘Fulfilment By Everpeaks’ capability, which is a self-managed technology platform that enables M2C Commerce with the ability to connect brands to consumers in the Southeast Asia region via a Free Trade Zone (FTZ) facility that is within an airport’s vicinity. With the funding secured, the company intends to allocate 40% of the investment for marketing purposes.
Engineered scaffolding and construction equipment supplier Dscaff, on the other hand, has raised an undisclosed amount in equity investment from Navis Capital Partners. Following the investment, Navis is now a major shareholder in Dscaff Group.
Dscaff is a prominent company in the region as it supplies scaffolding contracting services to major projects in Malaysia and Indonesia. Its clients include the Petronas Penapisan (Melaka) Sdn Bhd (PPMSB) – which runs a refining facility that produces Euro-5 grade petrol; Petronas Chemicals MTBE Sdn Bhd in Gebeng, Pahang; and PT Jaya Konstruksi in Jakarta.
In its media release, Dscaff says it was one of the few companies that was able to effectively implement Covid-19 procedures as its staff and workers were able to get back to work on critical projects while Movement Control Order (MCO) was enforced at the peak of the outbreak earlier this year.
The company has also recently introduced the Dscaff Approved Partners Program where it will support small-and-medium-sized scaffolding contractors to build and maintain a sustainable business by providing scaffolding materials at highly competitive rates.
“This releases the partners from the burden of costly capital expenditure, storage, maintenance and security costs thus allowing them to focus on building their business and maximising the shareholders’ value.
“Navis’ investment into Dscaff especially during this challenging time, shows great confidence in the ability for this innovative Malaysian based group to embrace the 'new norm' as an opportunity and to deliver growth to its shareholders as well as increasing value to our clients,” it states.