Funding Societies lands investment from Gobi Partners to tackle SME credit gap

By Gloria Methri

Funding Societies | Modalku, the SME digital finance platform in Southeast Asia, has announced a strategic equity investment from Gobi Partners, an Asia-focused venture capital firm.

The investment comes as lenders and investors have become increasingly cautious toward FinTech firms following industry challenges. Gobi Partners’ backing reinforces Funding Societies’ stability and growth in SME financing and its foray into payments since 2022.

Kelvin Teo, Co-founder and Group CEO of Funding Societies said, “We are honoured to receive this strategic investment from Gobi Partners. At a time when market conditions have led to increased caution toward FinTech firms, this partnership is a testament to our strong fundamentals and commitment to financial inclusion. SMEs remain the backbone of Southeast Asia’s economy, and we will continue to provide them with accessible and responsible financing solutions to help them grow and thrive.”

As Southeast Asia’s SME sector continues to face a significant credit gap—estimated at over $2.5 trillion (RM11.11 trillion)—funding Societies remain at the forefront of delivering innovative financing solutions tailored to small and medium-sized enterprises. This investment from Gobi Partners will help further enhance its technology-driven approach, leveraging AI and automation to streamline lending processes and improve risk management.

Thomas G. Tsao, Co-founder and Chairperson of Gobi Partners, said, “Funding Societies has consistently demonstrated strong execution and resilience in SME financing, making a meaningful impact on businesses across the region. Our investment underscores our confidence in their ability to navigate economic cycles, drive FinTech innovation, and continue closing the SME credit gap. We are excited to partner with them on this journey to strengthen financial inclusion across Southeast Asia.”

Despite economic uncertainties, Funding Societies remains committed to its mission of empowering SMEs with tailored digital financial products that address their evolving needs. The company has already disbursed over $4 billion (RM17.78 billion) in business financing to approximately 100,000 SMEs and processed annualised payments with gross transaction value (GTV) of over $1.4 billion (RM6.2 billion). As digital financial services remain a key driver of financial inclusion in the region, the partnership with Gobi Partners will enable Funding Societies to expand its reach and continue supporting SMEs that drive local economies.