Funding Societies announced the signing of a US$50 million (RM223 million) credit facility with HSBC Singapore to continue expanding the firm’s reach to underserved SMEs in the region.
Funding Societies has a disbursement track record of over more than US$2.6 billion (RM11 billion) through more than 5.1 million transactions across the region. In Malaysia alone, the platform has disbursed more than RM1 billion in financing to businesses. Through this new facility, the fintech lender will be able to channel the funds via its range of tailored financing solutions across SME segments across all of its five markets.
Co-founder and Group CEO of Funding Societies | Modalku, Kelvin Teo, said, “This marks a critical milestone for us and is a testament to our credit track record through Covid-19. HSBC’s foresight, global capabilities, and scalable approach further equip us to better satisfy the underserved SME segments in the region. We appreciate HSBC’s confidence in us and are excited about this signing.”
Country Head of Funding Societies Malaysia, Chai Kien Poon, said, “In Malaysia, we will continue to look for collaborative opportunities with partners across various sectors so we can help these SMEs reach their full economic potential in the recovery phase. For the FinTech and digital financing spaces to make headway, synergistic efforts with financial institutions and industry players are vital to better serve SMEs.”
Regina Lee, Head of Commercial Banking, 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. We are thrilled to support Funding Societies as they expand their reach to serving underserved SMEs in the region.”
This announcement comes at the heels of Funding Societies’ most recent acquisition of regional digital payments platform CardUp subject to regulatory approvals, as part of a series of efforts to diversify its services beyond financing. The digital financing platform also achieved several strategic milestones including its Series C+ equity raise of US$144 million (RM643 million) in February, its recent investment into Bank Index in Indonesia, and market entry into Vietnam – its fifth market.
