Funding Societies , a unified SME digital finance platform, has partnered with CGC Digital to provide digital supply chain finance to MSMEs in Malaysia. The aim of this collaboration is to provide a digital credit guarantee through a Shariah-compliant digital supply chain financing (DSCF) solution.

The intention behind this initiative is to better address the financing needs of micro and small enterprises in Malaysia, a segment that mostly remains underserved. Through the partnership, CGC Digital developed a new digital credit guarantee product on behalf of Credit Guarantee Corporation Malaysia Berhad (CGC). This product will offer financing opportunities up to MYR 4 million, benefiting up to 100 creditworthy micro and small enterprises. The avenue for the financing is through Funding Societies’ DSCF solutions, which leverages alternative data for MSMEs’ credit risk assessment. By leveraging the capabilities of technology and automation, Funding Societies and CGC Digital are able to improve the accuracy of risk pricing as well as the efficiency of financing processes.

Thereby facilitating the right-priced trade finance products for micro and small enterprises. More about Funding Societies and CGC Digital Based in Singapore, Funding Societies aims to improve financial inclusion in Southeast Asia through financing SMEs and by providing investment opportunities. The Societies’ mission is to enable fast and effortless access to funds by bringing various MSMEs and investors together on its platform.

Since 2015, Funding Societies has aimed to serve various small and medium enterprises grow their businesses, while also helping individual and institutional investors to grow their investment portfolio. In June 2022, Funding Societies acquired CardUp to benefit from the latter’s payment technologies and solutions. The acquisition included CardUp’s payment capabilities such as card payments to non-card accepting recipients (domestic and cross-border), online payments acceptance, invoice automation tools, as well as its licenses and integrations with third-party business software. CardUp’s payment services complemented Funding Societies’ lending products, to offer a unified financial experience for SMEs across the ASEAN region, enabling SMEs to manage and pay expenses, receive payments, and borrow funds all within one seamless digital platform.

The acquisition comes after Funding Societies’ Series C+ raise of USD 294 million in February 2022. CGC Digital is a data and technology subsidiary of CGC Malaysia, aiming to harness digital platforms and solutions to drive innovation and optimise the implementation of digital initiatives to empower MSMEs. CGC Digital is aiming to develop a one-stop, MSMEs-centric, digital ecosystem that provides a seamless avenue for businesses to secure credit guarantees and financing as well as practical assistance that is geared toward scaling up their operations in the digital space. .