Cheap2Shop

Cheap2Shop Sdn Bhd sells over 10,000 household goods as a RM2+ concept retailer across its 14 shops within Klang Valley, Penang, Kedah, Perak, Melaka and Selangor. In 2021, Cheap2Shop Sdn Bhd has a revenue of approx. RM 24 million and a pre-tax profit of approx. RM 500,000.

This is the 11th financing round of Cheap2Shop Sdn Bhd with Alixco P2P.

This investment note is secured by two personal guarantees and one corporate guarantee, as required by ALIXCO P2P Financing.

Cheap2Shop currently operates 14 shops within Klang Valley, Penang, Kedah, Perak, Melaka and Selangor.

'As a result of market demand, SWC Enterprise Sdn. Bhd. established the Cheap2shop chain in 2018, specializing in groceries and daily necessities.  Cheap2shop is a RM2plus concept retailer.  It is an additional business model created by SWC Enterprise Sdn. Bhd. for increasing the company’s growth.  With the growth of Cheap2shop (2018: 3 outlets, 2019: 3 outlets, 2020: 5 outlets) SWC Enterprise Sdn. Bhd. incorporated Cheap2shop Sdn. Bhd. and converted the business into a new entity.  During the year (2021): Cheap2shop Sdn. Bhd. successfully opened 3 new outlets even though the market was facing Covid-19 challenges.  Currently cheap2shop operates 14 outlets located at Penang, Kedah, Perak, Selangor, KL and Melaka.  In 2022, Cheap2shop plans to open another 4 new outlets at Kundang, Bandar Tun Razak, Muar and Yong Peng.' (Cheap2Shop)

Cheap2Shop's target market is medium-lower income surrounding its strategically positioned outlets. Products sold include household good (toys, baby’s products, F&B, kitchen utensil, gardening, plasticware), items for school use (stationery and books), for office use (office equipment such as staple, puncher, calculator, fastener) or for factory use (face mask).  Customers choose Cheap2Shop Sdn Bhd for its variety of products at a low price, which includes local and imported goods. 2

Funding amount
RM 350,000.00 for 6 months.
15,0 % interest (nominal, p.a.)

Business type
Sale of household goods and products (consumer staples)

Location
LOT 1315 JALAN SUNGAI BAKAU 48000 RAWANG SELANGOR

Number of outlets
14

Number of directors
Two

Personal guarantees
Two

Year of incorporation
2020

Number of employees
125



Important COVID-19 info:
The recent COVID-19 crisis and the MCO increase the riskiness of any P2P financing. Due to the severity and uncertainty of this situation, the risk of late payments and/or loss of capital for P2P financings increases. Companies might suffer from loss of business and revenue during this time, which will affect their profitability and repayment ability.


The risk score of CAA3 (‘High risk’) was determined by a blend of our internal risk-based pricing algorithm, an external risk score from a leading credit rating agency and a variety of qualitative factors. It is an approximation only and does not guarantee any specific outcome. Our risk score ranges from A(‘lower risk’), B(‘medium risk’), C(‘medium-high risk’) to D(‘high risk’).

Risk score of CAA3 (‘higher risk’)  indicates that this investment amount has an elevated-high level of risk. Cheap2Shop Sdn Bhd’s business is marked by thin margins and fluctuating revenues and income. In 2021, Cheap2Shop had a revenue of approx. RM 24 million and a pre-tax profit of approx. RM 500,000.


Alixco Disclaimer about Cheap2Shop Sdn Bhd:

Cheap2Shop's majority shareholder is SWC Enterprise Sdn Bhd, a company which has previously raised money (approximately RM 3 million) to scale up business operations via an ECF crowdfunding round with FBM Crowdtech Sdn Bhd (of which Alixco is also a part) on FundedByMe. SWC Enterprise has previously had 10  rounds of P2P financing with Alixco P2P, five of which have been fully repaid and five of which are still ongoing with a remaining outstanding amount of approximately RM 1 million.  Furthermore, the largest shareholder of SWC Enterprise Sdn Bhd is also majority owner of De Dyno Enterprise Sdn Bhd's, which has raised 7 P2P financing rounds (still ongoing, approx. RM 2.5 million) on Alixco and of SWC Properties Sdn Bhd which has also raised 8 P2P rounds (still ongoing, approx. RM 2 million) with Alixco P2P.

Cheap2Shop has previously raised 10 P2P financing rounds on Alixco P2P with outstanding repayments of approx. RM 2.3 million over 6 months.

The high outstanding financing amount across different companies with the same / similar majority shareholder significantly increases the risk of these P2P financings and the risk of loss of the invested capital.


Investor Fees
Alixco charges 1% (for 6 months investment notes) for investors on repayments only if repayment occurs.