SERV and Direct Lending, team up to provide financial relief to aftermarket businesses, rejuvenating the sector post-MCO
July 16, 2020
KUALA LUMPUR, 15 JULY 2020 – SERV and Direct Lending roll out financial relief for workshops under the SERV Retail-iation program, focusing on automotive aftermarket businesses. The partnership is a supply assistance program or “bantuan belian bekalan” amounting up to RM3,000 per workshop, aimed at aiding them to procure auto part supplies.
This partnership is made in response to the recent pandemic crisis, COVID-19, that has impacted most automotive aftermarket businesses that were unable to operate at full capacity due to the Movement Control Order (MCO) enforced by the Malaysian government. These businesses are having a hard time sustaining their business given the loss of revenue with many facing cash flow and working capital difficulties.
Most businesses in the aftermarket services are underserved by traditional banks and have limited access to financing. With this partnership, workshops can use the relief provided to procure necessary suppliers to meet customer’s demands. Direct Lending enables fast yet simplified assessment, made possible by leveraging on track record and digital payments usage of the workshops on SERV platform.
Meanwhile on the customer side, the process will be simpler with SERV app as an intermediary between customers and workshop as the cycle of social distancing will be practised by promoting digital solutions to the aftermarket sector. Through this partnership, more and more workshops will be able to cater to the growing demands, made available to our users.
The collaboration between the two Cradle funded startups will first focus on businesses that are already registered in the recently launched SERV Retail-iation program. Interested businesses can apply for the assistance by simply filling out an online application form.
“In these unprecedented times, we are doing the best that we can to assist our merchants. With Direct Lending as our partner, relief can be provided to surface our merchants’ financial needs in order for them to sustain in business with hopes that there will be upcoming new opportunities for the local automotive industry to continue to grow and remain competitive by adapting to the post Covid situation.” comment Group CEO of SERV, Arief Imran.
”This program is designed to assist micro-entrepreneurs to not just survive this crisis, but to thrive as we enable them a simple, flexible and affordable way to buy supplies as and when required to grow their businesses”, said Yik Seong, founder of Direct Lending.
“We are really proud of both SERV and Direct Lending for how much they have grown since they graduated from our CIP300 program, and seeing they are now collaborating to take part in reviving the nation’s economic sector. This strategic partnership between the two startups demonstrates how collaboration thrives within Malaysia’s entrepreneurship ecosystem, and also demonstrates how value propositions of two different startups can blend, creating a more complete solution for the market” comment the group CEO of Cradle Fund Sdn Bhd, Rafiza Ghazali.
The first batch of the program will cover up to 300 merchants, and will be available for application starting today, 15 July 2020. Both parties believe this kind of collaboration is very important to help the businesses sustaining operation, preserving jobs, hence accelerating the rejuvenation of the nation’s economic strength post-MCO.
SERV believes that every vehicle owner deserves a safe, transparent and reliable source of services at their fingertips. With that mission, SERV establishes itself in 2017 by offering on-site vehicle maintenance. Today, with a growing number of strategic partnerships, SERV’s offering expands to other essential needs of a vehicle under one platform, making them en-route to becoming South East Asia’s next vehicle super app.
About Direct Lending
Direct Lending operates an online personal lending marketplace in Malaysia that enables borrowers to search, compare, apply and receive financing that best suit them. The Company’s mission is to make safe and affordable financing accessible to every hardworking adult. Direct Lending is a recipient of Cradle’s CIP300 funding.