Funding Societies bags $7.5m to fuel financial inclusion for SMEs in SEA
By Gloria Mathias
Funding Societies | Modalku, the unified SME digital finance platform in Southeast Asia, announced that it has raised $7.5 million in debt from Norfund, a Development Financial Institution (DFI).
DFIs have the capacity and capabilities to support SMEs where commercial lenders and governments cannot, due to their strong financial position. This is where Norfund comes in where one of its core areas of investment is to increase financial inclusion. It has contributed about $4.54 billion in lending to 7.5 million clients.
Funding Societies, in its mission to empower SMEs and provide them with greater access to credit, has achieved over $3.2 billion in business financing, serving SMEs across the region. Through this debt fundraise, the FinTech lender will be able to channel the funds via its range of tailored financing solutions to the SME segments across all five markets it operates in.
Co-founder and Group CEO of Funding Societies | Modalku, Kelvin Teo, said, “We’re honoured to partner with Norfund, backed by the Norwegian government. This milestone is not only a testament to our credit track record through COVID-19 and macro uncertainties but also a timely opportunity to satisfy the growth capital needs of more underserved SMEs in Southeast Asia. We appreciate Norfund’s support in our mission and commitment to giving a fair opportunity for SMEs.”
This debt transaction will serve as a bridge, via Funding Societies, for the funds Norfund manages between the public and private sectors to mobilise the reach of its investments further into Southeast Asia.
Fay Chetnakarnkul, Norfund’s Regional Director (Asia), said, “We have been impressed with how Funding Societies has been able to serve Southeast Asia’s underserved businesses with its broad range of financing solutions and solve cash management challenges faced by these SMEs. We are pleased to be able to support Funding Societies as the company expands its reach and increases financial inclusion further, enabling more businesses to grow and create much-needed jobs in the region.”
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