Funding Societies, Southeast Asian SME digital financing platform, announced that it has raised US$18 million in debt financing led by a trio syndicate of financial institutions including Helicap Investments, the newly launched Social Impact Debt Fund, and an unnamed Japanese financial services group.
Helicap is a Singapore-based alternative lending firm that provides private debt investments to a wide network of accredited investors, including family offices, high net worth individuals, impact funds, and institutional investors.
In line with its support of sustainable lending, the Funding Societies joined the round through its investments arm, Helicap Investments, after the deal was arranged by its securities arm, Helicap Securities.
Helicap Securities acted as sole mandated lead arranger on the secured credit facility.
This syndicated facility of US$18 million is expected to increase further with interest from investors across Asia and Europe.
Together with funding received from European impact investors such as Triodos Investment Management for Indonesian business loans, Funding Societies said that it is on track to raise US$120 million in institutional debt for funding the growth needs of micro, small and medium enterprises (MSMEs) in Southeast Asia.
This funding round also expands the platform’s institutional lender base, which it secured after passing financial and risk due diligence conducted by the lenders.
Funding Societies provides MSMEs with business financing, which is funded largely by institutional lenders and retail investors.
The lender enables access to finance by using alternative data points including but not limited to the MSME’s cash flow to underwrite these loans.
Kelvin Teo
“The pandemic was an important test of resilience, and we are glad to have navigated it successfully, with a proven AI-led credit model.
We are honored for the faith of Helicap, the Social Impact Debt Fund, and the Japanese financial services group, enabling us to further ride on the growth of SME digital financing,”
said Kelvin Teo, Co-founder and Group CEO, Funding Societies and Modalku.
David Z. Wang
“We are delighted to have assisted Funding Societies in its goal of providing access to capital for underserved MSMEs.
This transaction demonstrates the ongoing institutional and individual appetite for private debt investment, and Helicap is well positioned to provide access to quality opportunities through our relationships with leading issuers such as Funding Societies.”
said David Z. Wang, Co-founder and CEO of Helicap, the parent company of Helicap Investments and Helicap Securities.
Featured image: (From left to right) Kelvin Teo, Co-founder and Group CEO, Funding Societies and Modalku; David Z. Wang, Co-founder and CEO, Helicap
