Funding Societies Secures $25 Million Investment, Bolsters SME Support in Southeast Asia
Funding Societies, a leading digital financing platform for small and medium-sized enterprises (SMEs) in Southeast Asia, has secured a $25 million investment from Cool Japan Fund. This latest funding round brings the company’s total equity raised to approximately $250 million, reinforcing its position as a key player in the region’s fintech landscape.
Founded in 2015 by Harvard Business School graduates Kelvin Teo and Reynold Wijaya, Funding Societies has grown rapidly, now operating in Singapore, Indonesia, Malaysia, Thailand, and Vietnam. The company has disbursed over $4 billion in loans to more than 100,000 businesses, addressing the critical financing gap faced by SMEs in Southeast Asia.
SMEs play a crucial role in the region’s economy, contributing nearly 50% to Southeast Asia’s GDP and serving as engines for job creation and innovation. However, these businesses often struggle to access sufficient working capital, a challenge Funding Societies aims to address.
The recent investment from Cool Japan Fund will enable Funding Societies to expand its services, particularly in offering financial support to Japanese companies operating in Southeast Asia. This partnership aligns with the company’s strategy to provide faster financing services to SMEs and invest in AI-driven technologies for digitizing and automating lending processes.
Funding Societies offers a diverse range of financing options, including term loans, micro-loans, and receivable/payable financing, with loan amounts ranging from $500 to $2 million. The company’s competitive edge lies in its one-stop-shop service for financing and supply chain needs, leveraging both online and offline channels and partnerships.
The investment comes at a time when digital financial services revenue in Southeast Asia is expected to rise, with anticipated consolidations in the credit fintech sector. Funding Societies has been proactive in this landscape, acquiring Sequoia-backed CardUp in December 2022 and making strategic investments in fintech and POS software companies.
Beyond its financial success, Funding Societies has demonstrated significant social and economic impact. A collaboration with the Asian Development Bank in 2020 revealed that Funding Societies-backed MSMEs contributed $3.6 billion to GDP and created approximately 350,000 new jobs. The company’s efficient processes have also boosted SME revenue by 13%.
As Funding Societies continues to grow and expand its services, it remains committed to its mission of addressing the financing needs of SMEs in Southeast Asia, driving economic growth and innovation across the region.
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