Funding Societies Co-Founder and Group CEO Kelvin Teo
Leading SME lending platform Funding Societies has announced a US$50 million credit facility from HSBC Singapore.
Funding Societies (aka Modalku in Indonesia) will be able to channel the funds via its range of tailored financing solutions across SME segments.
At the same time, the deal will enable HSBC to extend its global capabilities by tapping on the underserved segments across the region. Furthermore, it will act as the structuring bank, lender, facility and security agent in providing a flexible, scalable and pan-regional financing solution to support the fintech firm’s expansion.
Regina Lee, Head of Commercial Banking of HSBC Singapore, said: “As a leading SME digital financing platform, Funding Societies is playing an important role in contributing to Southeast Asia’s new economic growth by driving broader financial inclusion and supporting homegrown companies which are the building blocks of these economies.”
Also Read: Funding Societies enters neobanking space with investment in Indonesia’s Bank Index
The HSBC deal comes on the heels of Funding Societies’s most recent acquisition of regional digital payments platform CardUp.
Licensed and registered in Singapore, Indonesia, Thailand, and Malaysia and operates in Vietnam, Funding Societies provides business financing to small and medium-sized enterprises. It claims to have disbursed over US$2.6 billion through more than 5.1 million transactions across the region.
The SME lender achieved several other milestones, including its Series C+ equity raise of US$144 million in February, its recent investment into Bank Index in Indonesia, and market entry into Vietnam, its fifth market.
Its other backers are SoftBank Vision Fund 2, SoftBank Ventures Asia, Sequoia Capital India, Alpha JWC Ventures, SMBC Bank, BRI Ventures, VNG Corporation, Rapyd Ventures, Endeavor, EDBI, SGInnovate, Qualgro, and Golden Gate Ventures.
SMEs make up 97 per cent of all enterprises in Southeast Asia, bringing 40 per cent of GDP value across the region. In Singapore, the Department of Statistics released in its 2021 report that 99 per cent of enterprises are SMEs, contributing to 44 per cent of the nominal value added at approximately S$212 billion.
Commercial lending in Asia Pacific is projected to grow at a CAGR of 16.5 per cent, generating a revenue of more than US$7 trillion by 2028. This makes up about 25 per cent of the global market size of US$27.4 trillion.
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Image Credit: Funding Societies
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