Singapore-based digital finance platform Funding Societies has secured USD 27 million in debt funding to bridge the credit gap for SMEs in SouthEast Asia. Funding Societies, part of Modalku Group, is a unified SME digital finance platform in Southeast Asia.

It has successfully raised debt of USD 27 million. The funds will be channelled via Funding Societies' broad range of tailored financing solutions to support the underserved SME segments in the five markets it operates in. Bridging the ASEAN MSME financing gap In the ASEAN region, there are more than 70 million businesses that are categorised as MSMEs (micro, small and medium enterprises), accounting 99% of total establishments and contributing to 44.8% of the region's Gross Domestic Product (GDP).

Despite reports of increased access to credit for consumers, 39 million MSMEs in the region still face challenges to financing, according to the United Nations Capital Development Fund. This gap amounts up to USD 300 billion. Funding Societies consistently continues to expand the range of access to its services through this funding, while supporting SMEs to maintain their business cash flow.

Officials from Funding Societies said they're happy to receive this debt funding from such a diverse group of institutional investors, all of whom believe in the mission and growth story of serving Southeast Asia's SMEs. Amidst uncertain macroeconomic conditions, they continue to deepen their financing propositions across the company’s five markets for more underserved SMEs, alongside existing and new partners. Expanding SME financing reach and services in Southeast Asia This debt fundraise will only further grow Funding Societies' breadth of bridging the gap in financing to the SMEs it serves in Southeast Asia.

In its mission and commitment to giving a fair opportunity for these businesses, the company has begun offering solutions beyond lending, such as payments and collections – with the ambition of solving cash flow management challenges faced by SMEs. Funding Societies has achieved over USD 3.2 billion in business financing, processing more than 5 million transactions, serving about 100,000 SMEs across the region. What does Funding Societies do? Funding Societies, part of Modalku Group, is a unified SME digital finance platform in Southeast Asia.

It is licensed in Singapore, Indonesia, Thailand, registered in Malaysia, and operates in Vietnam. The fintech company provides USD 1 billion annually of business financing to SMEs. The company is backed by SoftBank Vision Fund 2, SoftBank Ventures Asia, Sequoia Capital India, Alpha JWC Ventures, SMBC Bank, BRI Ventures, VNG Corporation, Rapyd Ventures, Endeavor, EBDI, SGInnovative, Qualgro, and Golden Gate Ventures among others.

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