In one of the largest start-ups for a fintech startup in Malaysia, the pre-launch startup MyMy has just raised 12 million RM.
The total results from an investment of 10 million RM by Koperasi Angkatan Tentera Malaysia Berhad (Koperasi Tentera) in connection with existing investments.
MyMy is now valued at over RM50 million and in this new round will receive the regulatory capital to apply for Bank Negara Malaysia (BNM) e-money license.
The startup, which was founded in early 2018, is still running its beta solution and will only be started after the license has been acquired.
At launch, users will be able to change Ringgit in 11 different currencies (more to come) with no hidden fees and real-time exchange rates.
With the app and a card issued, users can easily travel and shop in over 200 countries.
Preparing for great ambitions
Even before the start, the team is extremely ambitious.
MyMy COO and Co-Founder Kishore Samuel said they plan to become Malaysia's first unicorn and the world's first sharia-compliant digital bank, adding that they are not just another e-wallet.
Ahmad Burhanuddin, chairman of Tunku Dato, MyMy chairman, said: "From the beginning, MyMy sought the expertise of Sharia experts and formed a committee of academics and business leaders."
"This ensured that MyMy was developed for ASEAN from the start and eventually for the 1.9 billion Muslims in the world."
Acquiring BNM's e-money license is also the first step on the startup's path to securing one of Malaysia's most sought-after digital banking licenses, due to be released in 2021.
It won't be easy with so many other long-established companies in Malaysia (and Singapore) showing an interest in getting one of the five licenses as well.
However, Joe McGuire, CEO of MyMy, is confident about their chances.
“Each applicant brings their own strengths and weaknesses. We're new which is a downside, but we're the only team in Malaysia that has developed all of its core technology in-house. Our ability to ship products is second to none in this region, ”he told Vulcan Post.
“In the consumer banking world, around 90% of the revenue comes from this cash management and lending. Acquiring a banking license is the surest route to profitability. "
A strategic partnership
Koperasi Tentera was founded in 1960 and is one of the leading credit unions in Malaysia following its transformation from a military thrift and credit union.
It has served nearly 160,000 members, including armed forces and Defense Department officials.
Under the contract with MyMy, the company plans to offer a range of new digital financial services to its members and their families over the next 12 months.
(Seated) MyMys Co-Founders Kishore Samuel and Joe McGuire with Koperasi Tenteras Brig. General Dato Ahmad Zahudi Hj Salleh (Rtd), CEO, and Mohd Ghazali Abbas, Deputy CEO, (Permanent) Chairman of MyMy, Tunku Dato, Ahmad Burhanuddin, and KTs Chairman, Maj. Gen Dato, Zulkiflee Mazlan / Photo Credit: MyMy
“This includes digitizing dividend payments (instead of issuing checks), providing digital accounts and e-wallets. We also intend to offer multi-currency solutions for members traveling outside of Malaysia following COVID-19, ”said Brigadier General Dato Ahmad Zahudi, CEO of Koperasi Tentera, in a joint statement.
In addition to acquiring an e-money license from BNM, Joe also announced that MyMy will use some of the seed funding to expand its team in Malaysia and its presence in ASEAN.
"We hope to get regulatory approval in a handful of other jurisdictions by the end of the second quarter of 2021," he added.
In all honesty, I find what MyMy is doing is very similar to what BigPay is already doing.
However, since MyMy has not yet launched, I cannot comment on their similarities and differences with confidence.
Still, Joe believes there is room for multiple players in the market and that good relationships with other fintech companies are possible.
- Find out more about MyMy and Koperasi Tentera here.
- Read about other startups that gained enough investor confidence to raise funds during the pandemic.
Fetaured Image Credit: MyMys Kishore Samuel, Tunku Dato Ahmad Burhanuddin and Joe McGuire with Koperasi Tenteras Brig. General Dato Ahmad Zahudi Hj Salleh (Rtd), Major General Dato Dato Zulkiflee Mazlan (Rtd) and Mohd Ghazali Abbas