(L-R) Funding Societies Co-Founders Reynold Wijaya and Kelvin Teo
Southeast Asian SME digital finance platform Funding Societies (known as Modalku in Indonesia) has secured US$27 million in debt funding led by AlteriQ Global.
Aument Capital Partners (ACP) and Orange Bloom also invested.
The funds will be channelled via the fintech startup’s tailored financing solutions to support the underserved SME segments in its five markets.
Also Read: Funding Societies enters neobanking space with investment in Indonesia’s Bank Index
Licensed and registered in Singapore, Indonesia, Thailand, and Malaysia and operating in Vietnam, Funding Societies provides business financing to small and medium-sized enterprises. In addition, it offers payments and collections intending to solve SMEs’ cashflow management challenges.
Funding Societies says it has achieved over US$3.2 billion in business financing, processing over 5 million transactions and serving about 100,000 SMEs across the region.
Last year, Funding Societies raised a US$50 million credit facility from HSBC Singapore.
ACP serves as a family office for its high-net-worth clients. Its newly set-up Sustainability Fund aims to support businesses and individuals financially to counter climate change and transition to more sustainable practices towards a low-carbon economy. This synergises with Funding Societies’s implementation of its Environmental and Social Management System launched early this year across its markets. It is an ESG risk assessment framework designed with technical assistance by the Dutch Good Growth Fund as part of the credit assessment part of the loan application process by an SME.
SMEs comprise 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 (US$155) billion.
Also Read: Funding Societies acquires payments solution startup CardUp
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.
The post SME lender Funding Societies nets US$27M debt funding appeared first on e27.