KUALA LUMPUR, 23 August 2022 – Funding Societies, Southeast Asia’s largest Small and Medium Enterprises (SME) digital financing platform, today announced the signing of a US$50 million (RM223 million) credit facility* with HSBC Singapore to continue expanding the firm’s reach to underserved SMEs in the region.
Co-founder and Group CEO of Funding Societies | Modalku, Kelvin Teo, says, “This is a sizeable facility from a global bank such as HSBC. This marks a critical milestone for us and is a testament to our credit track record through Covid-19. HSBC’s foresight, global capabilities, and scalable approach further equip us to better satisfy the underserved SME segments in the region. We appreciate HSBC’s confidence in us and are excited about this signing.
Commercial lending in the Asia Pacific is projected to grow at a CAGR of 16.5%, generating a revenue of more than US$7 trillion (RM31.27 trillion) by 2028 - which makes up about 25% of the global market size of US$27.4 trillion (RM122.4 trillion). The SMEs segment is anticipated to grow at the fastest rate.
Funding For SME
Country Head of Funding Societies Malaysia, Chai Kien Poon, says, “This milestone demonstrates Funding Societies’ commitment towards underserved creditworthy SMEs in the region.
“In Malaysia, we will continue to look for collaborative opportunities with partners across various sectors so we can help these SMEs reach their full economic potential in the recovery phase.
“For the FinTech and digital financing spaces to make headway, synergistic efforts with financial institutions and industry players are vital to better serve SMEs.”
Closer to home in Southeast Asia, many SMEs are still struggling to secure funding and it is estimated that there is a US$320 billion (RM1.43 trillion) funding gap in the region. Digital financing is projected to emerge as the largest contributor to fill that gap and improve that experience.
Funding Societies has a disbursement track record of over more than US$2.6 billion (RM11 billion) through more than 5.1 million transactions across the region. In Malaysia alone, the platform has disbursed more than RM1 billion in financing to businesses.
Through this new facility, the fintech lender will be able to channel the funds via its range of tailored financing solutions across SME segments across all of its five markets.