MADCash, a Malaysia-based fintech startup led by CEO Nuraizah Shamsul Baharin, aims to empower women entrepreneurs through innovative financial solutions.

The company primarily focuses on women running nano and micro businesses—often solo entrepreneurs who manage operations from their homes or roadside stalls near their residences. These women, while earning a daily income, face significant challenges due to their vulnerability to economic fluctuations, climate impacts, and the lingering effects of the pandemic. Moreover, many of them are either underbanked or have poor credit histories.

Recognising this gap, MADCash has developed a unique approach to micro-funding that differentiates it from competitors. “Compared to our competitors who charge an interest or management fee, we provide zero per cent interest loans,” says Baharin.

She emphasises that MADCash is not in the business of simply giving out loans. Instead, the company is committed to working with these women for a year, helping them grow their businesses and break free from the cycle of debt. The loans offered by MADCash do not require collateral, guarantors, or group loans.

This approach is complemented by MADCash Academy, which offers a robust support network of mentors and peers to guide these entrepreneurs. “This merger of zero per cent micro-funding with entrepreneurship development and 12 months of handholding is what makes us stand out,” Baharin adds.

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

The company’s journey began with a focus on profiling the women it aimed to support and tracking metrics related to its business growth. Over the past three years, MADCash has expanded its tools to improve profiling and measure more impact metrics.

Its recent expansion into Tajikistan prompted further innovation, including the modularisation of its programmes and the addition of multi-language options to better support the region. “Our product development process is driven by what our funders need and balanced with what our beneficiaries need to build better businesses,” Baharin explains.

MADCash making impact internationally

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

In addition to these financial contributions, funders allocate separate funds for MADCash’s entrepreneurship programme, which is a key revenue source for the company, helping it acts as an incubator.

Participating in the Technology for Sustainable Social Impact (TS2) programme has been immensely beneficial for MADCash. The mentorship from individuals such as Joe Rouse has been particularly impactful, helping the company align its next steps and apply critical insights to maintain its mission-focused approach. Additionally, the programme offered unique content delivered by excellent professors and trainers who provided valuable lessons on balancing social impact with business objectives.

The programme has also played a crucial role in introducing MADCash to potential collaborators, significantly extending their networks as they work towards expanding their reach both in Singapore and globally.

“We are looking forward to running our first pilot run in Singapore in August 2024 while working on onboarding 1,000 women in Malaysia. We have signed an LOU with a partner in Dhaka, Bangladesh, and look forward to working on our pilot project in 2025,” Baharin closes.

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

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Image Credit: NUS Enterprise

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