Funding Societies Raises US$7.5 Million Debt Funding from Norfundby Fintech News Singapore November 2, 2023
Southeast Asian SME digital finance platform Funding Societies secures US$7.5 million in debt funding from Norfund, a Norwegian Development Financial Institution (DFI). This is the first debt transaction by Norfund with a fintech SME lender in Southeast Asia.
Through this debt fundraise, Funding Societies will be able to channel the funds via its range of tailored financing solutions to the SME segments across all the five markets it operates in namely Singapore, Malaysia, Indonesia, Thailand, and Vietnam.
The fintech lender has achieved over US$3.2 billion in business financing serving about 100,000 SMEs across the region.
This debt transaction will serve as a bridge between the public and private sectors in mobilising the reach of Norfund’s investments further into Southeast Asia.
Kelvin Teo, Co-founder and Group CEO of Funding Societies | Modalku said,
“We’re honoured to partner with Norfund, backed by the Norwegian government.
This milestone is not only a testament to our credit track record through Covid-19 and macro uncertainties, but also a timely opportunity to satisfy the growth capital needs of more underserved SMEs in Southeast Asia.”
Fay Chetnakarnkul, Norfund’s Regional Director (Asia) said,
“We have been impressed with how Funding Societies has been able to serve Southeast Asia’s underserved businesses with its broad range of financing solutions and solving cash management challenges faced by these SMEs.
We are pleased to be able to support Funding Societies as the company expands its reach and increases financial inclusion further, enabling more businesses to grow and create much needed jobs in the region.”