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KUALA LUMPUR - VCI Global Limited (NASDAQ:VCIG), a company currently rated with "GREAT" financial health according to InvestingPro analysis, has announced that its fintech subsidiary, Credilab Sdn Bhd, has received a $1 million investment from Triple Helix Capital Ltd, a Dubai-based private investment fund. This strategic funding is aimed at scaling Credilab’s operations and advancing its goal of becoming a leading player in the digital lending space. According to InvestingPro’s Fair Value analysis, VCIG appears undervalued at current levels, suggesting potential upside for investors.
Credilab, which operates under a Malaysian government-approved license, offers same-day loan disbursements to microfinance and small and medium-sized enterprise (SME) segments, areas traditionally underserved by conventional banks. Utilizing advanced technology, the company streamlines the loan process from application to disbursement, ensuring compliance and secure transactions.
The investment comes after a period of significant growth for Credilab, which reported a 116% increase in revenue year-over-year in the first half of 2024, amounting to $0.7 million. During the same period, the value of its loan book grew by 67% to $13.3 million. The company also boasts a near-zero Non-Performing Loan (NPL) rate.
With the new capital injection from Triple Helix, Credilab plans to expand its platform, diversify its financial product offerings, and implement a market entry strategy to boost revenue and create value for stakeholders. The company’s strong financial position is evident in its current ratio of 5.58 and minimal debt-to-equity ratio, providing a solid foundation for this expansion. InvestingPro subscribers can access 15+ additional key metrics and insights about VCIG’s growth potential and financial stability.
Dato’ Victor Hoo, Group Executive Chairman and CEO of VCI Global, expressed confidence in Credilab’s potential to become a major fintech success in Southeast Asia and beyond, citing the company’s innovative business model, solid financial performance, and exceptional risk management.
Credilab’s technology-driven approach includes features such as instant cash loans with minimal documentation, short processing times, and flexible repayment options, all designed to promote financial inclusion.
Triple Helix Capital is known for its investment expertise across various sectors, including technology. The firm’s investment in Credilab aligns with its strategy of identifying and managing valuable investment opportunities.
VCI Global, a diversified holding company, focuses on sectors such as AI & Robotics, Fintech, Cybersecurity, Renewable Energy, and Capital Market Consultancy, with operations spanning Asia, Europe, and the United States.
This development is based on a press release statement and reflects the company’s current plans for Credilab’s growth trajectory. However, it’s important to note that forward-looking statements involve risks and uncertainties, and actual results may differ from those projected.
In other recent news, VCI Global Limited has secured $33 million in contracts to deploy advanced AI infrastructure solutions over the next year, catering to clients in high-growth industries. These projects focus on enhancing computing capabilities, with notable clients including Hexatoff Group Sdn Bhd and Quantum Universe Capital Sdn Bhd. Additionally, VCI Global announced a reverse stock split at a 1-for-20 ratio to comply with Nasdaq’s minimum bid price requirement, reducing the number of shares from about 54.5 million to 2.8 million. The company also introduced DeepAI, an AI-as-a-service platform designed to facilitate the adoption of large language models for businesses of varying sizes. DeepAI offers scalable infrastructure and emphasizes data sovereignty and security, with different tiers catering to small to large enterprises. Furthermore, VCI Global launched V Gallant CyberSecure, a new AI-driven cybersecurity solution featuring military-grade encryption and automated system backups to protect against cyber threats. This solution includes The Vault, an encrypted backup system that ensures rapid data recovery. VCI Global’s ongoing initiatives reflect its commitment to innovation and growth across various sectors, including AI, cybersecurity, and capital market consultancy.
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