Press Release
Funding Societies raises 1.3Bn Baht, plans to enter Thailand
Bangkok, 26 May 2020 - Funding Societies, Southeast Asia’s largest SME digital financing platform, has recently completed a Series C funding commitment of 1.3 billion baht. The funds will be utilised in further expanding its business to other countries in the region, including Thailand.
Since its establishment in 2015, Funding Societies has been striving to enhance access to funding for SMEs across Southeast Asia and bridge the 10 trillion baht SME financing gap. The fintech platform has disbursed over 30 billion baht across 2 million loans to SMEs in Singapore, Malaysia and Indonesia. To be able to address SME needs across segments and industries, it provides a wide range of product solutions including but not limited to business term loans, line of credit, and supply chain financing. The funding amount ranges from as small as 10,000 baht equivalent to 45 million baht.
“We’re honoured by the conviction from both existing and new investors in Series C, including a major Indonesian bank. Our mission is to enable SMEs and uplift societies in Southeast Asia. Building on our leading position in Singapore, Indonesia, and Malaysia, we are looking forward to contributing to Thailand this year,” says Kelvin Teo, Co-Founder and Group CEO of Funding Societies.
According to the Thailand Credit Guarantee Corporation, over 90% of the country’s registered companies are SMEs, contributing to over 50% of total employment. The fact that Southeast Asia’s second largest economy relies heavily on small businesses makes its 1.3 trillion baht SME funding gap stand out among the country’s biggest concerns. Many SMEs are credit-constrained because they find it difficult to receive funding from traditional financial institutions that tend to favour more established businesses. Nonetheless, Thailand’s digital savvy population and mobile penetration of over 70% shows immense potential for fintech platforms to meet the market’s credit needs.
Iwan Kurniawan, Co-Founder and Chief Operating Officer of Modalku (Funding Societies’ Indonesian arm) comments, "We strongly believe that our successful digital financing products in Indonesia will translate well in Thailand, as the market conditions are similar in many ways. By providing access to fast, flexible, unsecured lending, Funding Societies is confident of benefitting SMEs, especially as they struggle with the impact of the COVID-19 crisis.”
Funding Societies has been granted licenses from regulatory agencies for P2P lending in Singapore, Indonesia, and Malaysia. It has also partnered with multiple leading banks across
the region to service SMEs and businesses that are not operationally viable for banks. In line with the Thai government's vision of Thailand 4.0 with focus on innovation and technology, Funding Societies hopes to make a significant contribution towards enabling the success of Thai SMEs and supporting the Thai economy.
Contact Information
Name: Nattapat Thanesvorakul Position: Head of Business Development Email: kun@fundingsocieties.com
About Funding Societies | Modalku
Funding Societies | Modalku is the largest SME digital financing platform in Southeast Asia. It is licensed in Singapore, Indonesia and Malaysia, and backed by Sequoia India and Softbank Ventures Asia Corp amongst many others. It provides business financing to small and medium-sized enterprises (SMEs), which is crowdfunded by individual and institutional investors. In 4 years, it has helped finance over 2 million business loans with over S$1.4 billion in funding. It was given the MAS FinTech Award in 2016, the Global SME Excellence Award at the United Nations’ ITU Telecom World in 2017, Brands for Good in 2019, and recognised by IDC as amongst the 5 fastest growing FinTechs in Singapore in 2020.
More information on Funding Societies at https://fundingsocieties.com/
