back Back

Funding Societies raises $294m to fuel expansion plans in SEA

By Leandra Monteiro

February 17, 2022

  • Asia
  • Digital Lending
  • Expansion
Share

Funding Societies Funding Societies (which goes by Modalku in Indonesia), a SME digital financing platform, announced that it has raised $144 million in an oversubscribed Series C+ equity round led by SoftBank Vision Fund 2, with new investors notably Vietnamese tech giant VNG Corporation, Rapyd Ventures, Asia-based global investor EDBI, Indies Capital, K3 Ventures, and Ascend Vietnam Ventures.

The company also received US$150 million in debt lines from institutional lenders across Europe, the United States, and Asia, some of which have been drawn down since 2021. This comes on the back of its $45 million Series C raised between 2020 and 2021.

Co-founder and Group CEO, Kelvin Teo, said, “We’re honoured by the faith of our new and existing shareholders. We started Funding Societies | Modalku to empower SMEs by solving their biggest problem, access to financing, especially unsecured financing. A common misconception is that we compete with banks. The reality is we ‘compete’ with savings, friends and families, and personal credit cards. There is a huge unsecured financing gap because it takes patience and focus, or you risk losing a lot of money. Having proven our AI-led credit capabilities in an unprecedented financial crisis, we look to serve SMEs even better with neobanking and deeper regional presence in Southeast Asia.”

“SMEs across Southeast Asia have historically struggled to access institutional finance and instead been forced to mainly rely on personal funding to support growth”, said Greg Moon, Managing Partner at SoftBank Investment Advisers. “Funding Societies is establishing a bridge for these companies to access more sustainable and cheaper financing by building unique data sets on their performance and using AI-led technology to assess their creditworthiness more effectively than traditional models. We are delighted to partner with Kelvin Teo and the team to support their mission to improve societies in Southeast Asia by funding worthy and underserved SMEs.”

Funding Societies’ annualised loan origination has exceeded US$1 billion in Q4 2021. Separately, a portion of the Group’s outstanding loan exposure comes from Europe-based institutional lenders. Since 2019, Funding Societies has expanded its suite of financial services beyond lending and plans to bring its operations to more locations in Southeast Asia within the next 12 months.

Previous Article

February 17, 2022

Bolero International partners with 360tf to expand Galileo Multi-Bank

Read More
Next Article

February 17, 2022

Trace Finance announces $4.3m seed funding to disrupt global banking

Read More










IBSi Daily News Analysis

May 31, 2023

Asia

Deepfakes and generative AI trigger more online identity verification in FS

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

May 31, 2023

Prosper appoints new Chief Marketing Officer

Read More

May 31, 2023

Fortis Private Bank selects Q2 PrecisionLender to enhance client relationship

Read More

May 31, 2023

3 softwares enabling banks to redefine their digital banking experience

Read More

Related Reports

Sales League Table Report 2022

£1,500.00 / year

Know More
Global Digital Banking Vendor & Landscape Report Q1 2023

£1,500.00 / year

Know More
Wealth Management & Private Banking Systems Report Q1 2023

£1,500.00 / year

Know More
Global Transaction Banking Vendors and Landscape Report Q1 2023

£1,500.00 / year

Know More
Treasury & Capital Markets Systems Report Q1 2023

£1,500.00 / year

Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
close-link
Get your copy now! IBSi Sales League Table 2022