business

Agrobank inks MoU with foodpanda Malaysia to provide financial aid to vendors, delivery partners

KUALA LUMPUR: Agrobank has signed a Memorandum of Understanding (MoU) with foodpanda Malaysia to provide financial aid for foodpanda vendors to start and grow their businesses through HomeChef vertical.

With the partnership, foodpanda's vendors and delivery partners will have the opportunity and access to Agrobank's Pemulih NewBiz Financing Programme.

The programme is a micro-financing scheme for individuals affected by the current economic challenges but aspires to start their own home-based business centred on food products.

Agrobank president and chief executive officer Tengku Ahmad Badli Shah Raja Hussin said under the partnership, up to RM200 million in financing will be made available to foodpanda's vendors, of which RM50 million will be allocated for the first tranche.

He added that the partnership will further boost the bank's vision of leading the nation's agricultural sector through its shariah-compliant financing products and financial solutions.

"We are honoured to ink this MoU with foodpanda where we will provide our financial expertise and support to its existing and potential vendors and delivery partners under their HomeChef initiative through our Pemulih NewBiz Financing Programme.

"Agrobank's ongoing efforts through our full-chain financing programmes are in line with the National Agro-Food Policy which contributes meaningfully to the national gross domestic product (GDP) while increasing food safety and Self-Sufficiency Levels (SSL) in Malaysia," he said during the MoU signing ceremony here today.

HomeChef is foodpanda's initiative to develop the growth and expansion of home-based businesses while connecting customers to unique homey dishes via the foodpanda platform.

Currently, there are more than 5,000 HomeChef vendors under foodpanda Malaysia.

foodpanda Malaysia chief executive officer Sayantan Das said the company believed in empowering entrepreneurship to boost the growth of local businesses.

"foodpanda does not function as a mere passive marketplace where vendors can connect with their customers but we strive to nurture and support them to achieve their full potential.

"We are confident that with this Agrobank partnership, we can synergise our strengths and deliver great changes for aspiring entrepreneurs on our platform," he said.

Under the Pemulih NewBiz Financing Programme, applicants will be given a moratorium for the first six months and charged a three per cent profit rate for the seventh month with a maximum financing period of up to 60 months.

The financing ranges from a minimum of RM1,000 and up to RM75,000.

The financing can be used for the purchase of fixed assets and working capital for business activities such as distribution and delivery of food through p-hailing platforms such as foodpanda.

foodpanda delivery partners, too, can obtain financing to purchase motorcycles through this programme.

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