MADCash, a fintech startup based in Malaysia and led by CEO Nuraizah Shamsul Baharin, is dedicated to empowering women entrepreneurs with innovative financial solutions.

The company’s main focus is on women who run nano and micro businesses, often working independently from their homes or roadside stalls near their homes. These women, despite earning daily income, face various challenges due to economic fluctuations, climate impacts, and the aftermath of the pandemic. Many of them are underbanked or have poor credit histories.

In response to this gap, MADCash has created a unique micro-funding approach that sets it apart from its competitors. Baharin explains, “Unlike our competitors who charge interest or management fees, we offer interest-free loans.”

MADCash is dedicated to more than just lending money. The company commits to working with these women for a year, helping them expand their businesses and escape the cycle of debt. The loans provided by MADCash do not require collateral, guarantors, or group loans.

Complementing this approach is MADCash Academy, which offers a strong support system of mentors and peers to assist these entrepreneurs. Baharin states, “The combination of interest-free micro-funding with entrepreneurship development and a year of support is what makes us stand out.”

Also Read: The climate change and gender equality connection: How to support underfunded women-owned businesses

The company’s journey began by profiling the women it aimed to assist and tracking business growth metrics. Over the last three years, MADCash has enhanced its tools to better profile and measure impact metrics.

Expanding into Tajikistan led to further innovation, including modularizing programs and adding multi-language options to better serve the region. Baharin explains, “Our product development is driven by the needs of our funders while considering what our beneficiaries need to build stronger businesses.”

MADCash’s Global Impact

MADCash’s business model relies on strategic partnerships with banks and corporations that provide Corporate Social Responsibility (CSR) funds to support underserved communities. These funds, received as donations, are distributed as grants or interest-free loans, depending on the region.

In addition to financial contributions, funders allocate separate funds for MADCash’s entrepreneurship program, a key revenue source that allows the company to operate as an incubator.

Participating in the Technology for Sustainable Social Impact (TS2) program has been incredibly beneficial for MADCash. Mentorship from individuals like Joe Rouse has been impactful in helping the company align its next steps and apply critical insights to maintain a mission-focused approach. The program also offered valuable lessons on balancing social impact with business objectives.

The program has played a crucial role in introducing MADCash to potential collaborators, expanding its networks as it seeks to grow both in Singapore and globally.

“We are excited to launch our first pilot program in Singapore in August 2024 and onboard 1,000 women in Malaysia. We have signed an agreement with a partner in Dhaka, Bangladesh, and are planning our pilot project for 2025,” Baharin concludes.

“We are also developing more business, financial, and mental health resources for MADCash Academy.”

Image Credit: NUS Enterprise

The post In empowering women entrepreneurs, MADCash develops a ‘unique’ approach to micro-funding appeared first on e27.