Crowdfunding platform for Asia’s non-profits SimplyGiving nabs US$690K
The company has a programme called Donor Pays, a voluntary fee applied to the giver, which makes it easier for charities to list a campaign
Asia’s largest social crowdfunding community SimplyGiving announced today receiving MYR 2.95 million (a little over US$690,000) in funding from Malaysia Venture Capital Management Berhad (MAVCAP).
The money will be used for regional expansion, as well as development of technologies and innovations to help increase awareness for non-profits or social-good campaigns. The company shared it will soon launch a regional B2C marketing campaign called ‘Social Giving Revolution’ with the goal of inspiring Asians to become more involved in giving online.
With offices in Kuala Lumpur, Singapore and Hong Kong, SimplyGiving works to connect non-profits and social enterprises with the online community. So far, the company has engaged with about 500 non-profits in 20 countries across Asia.
“Ultimately, we are a people business. Our local support is what sets us apart. The platform is built to easily add languages and currencies, which means we can stay local as we grow. For a concerted launch in a new country, we will invest in local talent to drive relationships on the ground,” SimplyGiving CEO Kristofer Rogers explained to e27.
For example, he shared that SimplyGiving looks into strategic partnerships before launching into a new country. If there is a mass participation event in a given country, SimplyGiving is nimble enough to use that opportunity as a launching pad for a country expansion.
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When asked what campaign he is most proud of, Rogers said,
“When natural disasters happen, it’s always very rewarding to see our partners launch social crowdfunding campaigns via SimplyGiving that make a big difference. People rally together during these times, so our peer-to-peer fundraising really comes in to its own. A recent example would be the Singapore Red Cross Nepal Appeal.”
A quick peek into the website shows campaigns such a 10K run/walk fundraiser to help curb poverty in Cambodia or a No-shave-November campaign to support cancer research.
SimplyGiving is a for-profit company. So, to offset costs for charities, one feature the P2P lending service uses is called Donor Pays — a five per cent ‘tax’ paid by the giver to offset the fees for the non-profit.
For example, if I pay US$100 to support the Cambodian poverty walk, I can click a button that says ‘Yes! I want 100 per cent of my donation to go to the charity’. I am then charged US$105 and the extra five bucks offsets the fees the non-profit pays to list on SimplyGiving. Rogers says it currently has an 86 per cent opt-in rate for this feature.
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The next challenge for SimplyGiving is scaling.
“We need to get the scalable model right in order to grow and build value in our business. The biggest challenge is making sure we can cope with the growth we’re experiencing right now, and it’s a serious challenge,” said Rogers.
Rogers told e27 that the seeds for the investment grew out of e27’s flagship initiative Echelon in Singapore. He met a MAVCAP representative during a ‘speed dating’ pitch round. Afterwards, the two continued the conversation in Kuala Lumpur and eventually the investment was agreed upon.
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