Southeast Asia Fintech Market Sees Significant Growth as Funding Societies Raises $25M for SMEs
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“We Want to Pay It Forward”: Funding Societies Raises $25M to Boost Capital for SMEs in Southeast Asia
Funding Societies, a Singapore-based fintech company, has announced that it has secured $25 million in funding to boost its capital and further support small and medium-sized enterprises (SMEs) in Southeast Asia. This new investment is significant, as it highlights the growing demand for digital financial services in the region.
According to an e-Conomy SEA Report 2024, digital lending is expected to lead the way in Southeast Asia’s fintech market, accounting for approximately 65% of total revenue. As a result, Funding Societies has positioned itself as a leader in this space by providing access to capital for SMEs, which is critical to driving economic growth and job creation.
Funding Societies’ CEO, Teo, emphasized that the company’s goal is to “pay it forward” and make a positive impact on the region. In 2020, the company collaborated with the Asian Development Bank (ADB) on a social and economic impact report, which revealed that Funding Societies-backed MSMEs contributed $3.6 billion to GDP and created approximately 350,000 new jobs.
The funding will be used to expand its lending capacity and further develop its technology platform, which has already demonstrated significant results in terms of disbursement speed and simplicity of application processes. The company’s acquisition of Sequoia-backed payments fintech CardUp in December 2022 has also contributed to its growth, almost tripling revenue while maintaining a flat headcount.
Funding Societies’ focus on SMEs is crucial for the region’s economic development. By providing access to capital and financial services, Funding Societies is empowering these businesses to grow and create jobs, which can help alleviate poverty and promote sustainable economic growth.
In addition, the company has also made investments in three companies, including a fintech firm and a startup specializing in POS software, demonstrating its commitment to nurturing innovation and entrepreneurship within the ecosystem.
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Source: techcrunch.com
