Revenue-based financing (RBF) and growth platform Choco Up has formed a strategic alliance with investment management firm Wonder Capital Group to launch a series of private credit funds, projected to raise US$50 million.
The collaboration seeks to unlock the untapped potential of asset-light businesses in Asia Pacific by combining Choco Up’s financing platform with Wonder Capital’s financial expertise.
Together, they aim to support the region’s SMEs and “deliver a compelling investment proposition” for institutional players seeking high-growth opportunities.
Also Read: Choco Up, Set Sail AI forge partnership to help businesses grow through Gen AI adoption
The partnership has commenced with the closing of a US$10 million private credit funding round financed by the CMAG Private Credit Fund under the guidance of Wonder Capital. The fund, spearheaded by Wonder Capital, will catalyse growth for e-commerce, SaaS, and technology businesses.
SMEs constitute 98 per cent of all businesses in Asia yet contribute only 38 per cent to the region’s GDP, highlighting a substantial US$2 trillion funding gap that hinders their growth and expansion. Singapore- and Hong Kong-based Choco Up aims to bridge this gap through innovative financing solutions, offering flexible, non-dilutive, revenue-based financing and tailored growth strategies.
Choco Up’s adaptable financing solutions help businesses increase revenues, introduce new products, expand their user bases, grow their teams, and achieve acquisitions. It has so far financed over US$1 billion in gross merchandise value across APAC.
Gigi Chan, founder and CEO of Wonder Capital, noted that the partnership with Choco Up allows them to tap into the “blue ocean” of asset-light businesses across APAC.
Percy Hung, founder and CEO of Choco Up, added that the partnership extends beyond funding, leveraging Wonder Capital’s network and resources to help businesses overcome growth barriers and realise their expansion plans.
Also Read: Choco Up, Atlas Growth Fund to provide US$15M capital to F&B firms in Singapore
Last year, Choco Up partnered with restaurant tech company Atlas to provide F&B firms with Atlas’s restaurant Operating System and up to SGD20 million (~US$15 million) in capital from Choco Up. Three months later, it joined hands with Set Sail AI, an intelligent contact centre solution provider, to promote the adoption of generative AI solutions among businesses and merchants.
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