Malaysian accounting application and P2P microfinance for farmers – Health Guild News


The local agricultural landscape is certainly moving towards adoption smart agriculture methods, either a urban or rural areas.

But becoming a successful farmer is not just about finding the most efficient form of farming; you also need to manage accounting systematically and find the best way to finance an expensive agritech.

It is branded as an agro-fintech startup, Captains is an initial startup that focuses on empowering smallholder farmers through digital and financial inclusion. Its name is abbreviated to capital for farmers, which translates into capital for farmers, summarizing their objectives.

Kapitani is co-founded by Nazrul, Iskandar and Hadi, who are the CEO, COO and CTO of the company, respectively. Nazrul was an engineer in the telecommunications industry, while Iskandar was an engineer in Sime Darby Group and ZTE, and Hadi is a specialist in systems integrators.

Helping small farmers innovate

“While most smallholder farmers understand that technology adoption will improve profitability and efficiency, they live harvest to harvest without the excess capital that could fund the high initial costs of high-tech agricultural systems and equipment. “, shared the team with Vulcan Post.

Although there are many loans for agriculture available in Malaysia with a relatively low interest rate, farmers are still reluctant to apply for loans. The reason is the lack of financial data to make informed decisions about the incorporation of agritech.

Nazrul and Iskandar with a farmer subscribed to their application / Image credit: Kapitani

“Our short-term goal is to help smallholder farmers build a solid track record of past business performance from their farms to predict future growth potential,” they explained.

Should it work as planned, this data will give these farmers the confidence they need to make informed decisions like any other company.

These data are almost non-existent for small farmers so far, because most do not have any kind of accounting and continue to manage their farm in the traditional way that mixes personal income with farm income.

Starting from the basic concepts

As it is still an initial launch, Kapitani is still doing beta testing with a group of farmers and for now it is only available for Android users.

Basically, this is how it works: once farmers have subscribed to their accounting application, it will help them build a solid track record of their farm’s operations. What comes next will be to show your credit and investor value to potential financiers.

The channeling of public investment to the local agricultural sector will be done through a P2P microfinance platform, on which the Kapitani team is currently working.

Dictionary time: P2P (peer-to-peer) financing (quite similar to crowdfunding) allows individuals to obtain loans directly from other people, eliminating financial institutions as intermediaries. P2P financing sites usually have a wide range of interest rates depending on the solvency of the borrower.


The wide range of interest rates may appeal to farmers looking for better rates than banks.

“Kapitani’s long-term goal is to connect farmers who want to get affordable credit with Malaysians who want to invest in food farming in a simple and transparent way that also empowers local farmers,” the team simplified.

“But before we can do that, we need to ensure that farmers are reversible by quantifying risk and loan return with a systematic record of historical data on farm operations (expenditure, activity, production and income).”

For Kapitani, the prerequisite for raising funds on his platform is that it can only be used for agritech adoption. Farmers do not need to leave any collateral, as it is microcredit.

Connection of lenders and beneficiaries

In addition to seeing the need to empower local farmers with agritech, Kapitani’s team also saw an increase in public interest in investing in agriculture.

This is due to the demand for commercial crops such as chili, melon and cucumber which can be grown locally but which are mostly imported for now.

Inside the Captain / Image Credit app: Captain

“The opportunity to invest in these crops is limited for ordinary Malaysians due to their high barrier to entry in terms of agricultural skills and experience, land requirements and a high initial capital investment,” the problem.

For providers, they can access real-time agricultural data and farmers ’credit scores through the Kapitani app which also customizes the terms of profit sharing and amortization based on each farmer’s financial health and agricultural performance. .

One of the risks the team pointed out was that agriculture is the sector most affected by the risks of climate and natural disaster. Therefore, they are looking for options to mitigate these risks with crop insurance, and the premium would be shared by both farmers and microfinance.

Teaching one of his farmers digital on-site accounting / Image credit: Kapitani

Kapitani’s team also clarified that they want to position farmers and the public as partners rather than an investor-stakeholder relationship, so the ROI would be in the form of profit sharing rather than interest.

“P2P microfinors could connect with the farms they have funded and visit their farms, as this is an important way to build trust and long-term relationship.”

Give love to Malaysian chilies and ginger

They currently have 100 small farmers helping them test their application and most come from their partners: Pertubuhan Peladang Kawasan Kuala Langat (PPK Kuala Langat), Pewaris Bumi hijau, Sulaiman Plantations and GM Peladang.

Use local farmers with their #SapotLokal vision / Image credit: Kapitani

“Our users are mostly farmers of ginger and chili. According to the data, ginger and chili are the most important crops that are imported, around 80% and 73%, to serve Malaysia’s domestic consumption. This translates into annual imports worth RMS 300 million, ”the team shared with Vulcan Post.

This is a great opportunity for small farmers as it is an existing gap in demand and supply in the local market. We just need to make sure that the adoption of agricultural products can help small local farmers to produce crops that can match the value, prices and quality of the imported ones.

Kapitani’s team

  • You can find more information about Kapitani here.
  • You can read more agritech articles we have written here.

Featured Image Credit: Nazrul, Iskandar and Hadi, co-founders of Kapitani

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