Online Lending Platform Funding Societies Raises US$294 Million to Accelerate Expansion Plans in Southeast Asia | AsiaTechDaily
Finance companies known as Modalku in Indonesia, an online lending platform for MSMEs, have raised a total of US$294 million to fuel their expansion plans in Southeast Asia.
According to the company, it has raised US$144 million in an oversubscribed Series C+ funding round led by Japanese venture capital fund SoftBank Vision Fund 2 with participation from new investors Rapyd Ventures, the giant Vietnamese technological VNG Corporation, Indies Capital, a global group based in Asia. investor EDBI, Ascend Vietnam Ventures and K3 Ventures. It received funding of US$150 million in the form of lines of credit from institutional lenders in Asia, Europe and the United States.
Co-founder and CEO of the Finance Companies Group, Kelvin Teo said the company is honored by the trust of its new and existing shareholders. “We launched the finance companies | Modalku to empower SMEs by solving their biggest problem, access to finance, especially unsecured finance. A common misconception is that we compete with banks. The reality is that we “compete” with savings, friends and family, and personal credit cards. There is a huge gap in unsecured funding as it takes patience and focus otherwise you risk losing a lot of money.
He added: “Having proven our AI-led credit capabilities in an unprecedented financial crisis, we seek to better serve SMEs with neobanking and [a] a stronger regional presence in Southeast Asia,”
Greg Moon, Managing Partner at Softbank Investment Advisers, said: “Finance companies are building a bridge for these companies to access more sustainable and cheaper funding by creating unique datasets of their performance and using a AI-based technology to assess their creditworthiness more efficiently than traditional companies. models. We are delighted to partner with finance companies to support their mission of bettering societies in Southeast Asia by financing worthy and underserved SMEs.
About finance companies
Founded in 2015 by Kelvin Teo and Reynold Wijaya, Funding Societies empowers MSMEs in Southeast Asia. It addresses key pain points for MSME growth, starting with the US$300 billion financing gap in the region.
The FinTech platform offers micro loans ranging from $500 to $1.5 million that can be disbursed within 24 hours, suitable for small businesses looking to manage their cash flow.
The company also operates in four other countries besides Indonesia and has disbursed a total of US$2 billion in business finance to MSMEs through 5 million loan transactions to date.
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