Funding Societies has successfully raised debt of US$27 million (RM126 million) led by Asia-focused private credit financier AlteriQ Global, with multi-family office Aument Capital Partners (ACP), and sustainability-focused fund Orange Bloom who also invested in this debt funding round.
The startup said the funds will be channeled to a broad range of tailored financing solutions targeting the underserved SME segments in the five markets it operates in.
In the ASEAN region, there are more than 70 million businesses that are categorised as MSMEs (micro, small and medium enterprises), accounting 99% of total establishments and contributing to 44.8% of the region’s Gross Domestic Product (GDP). Despite reports of increased access to credit for consumers, 39 million MSMEs in the region still face challenges to financing, according to the United Nations Capital Development Fund, this gap amounts up to US$300 billion (RM1.4 trillion). Funding Societies is looking to expand the range of access to its services through this funding while supporting SMEs to maintain their business cash flow.
Co-Founder and Group CEO of Funding Societies | Modalku, Kelvin Teo, said, “We are delighted to receive this debt funding from such a diverse group of institutional investors, all of whom believe in our mission and growth story of serving Southeast Asia’s SMEs. Amidst uncertain macroeconomic conditions, we continue to deepen our financing propositions across our five markets for more underserved SMEs, alongside existing and new partners.”