Southeast Asia Fintech Platform Secures $25 Million in Funding for Small Business Support
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Title: ‘We Want to Pay It Forward’: Funding Societies Raises $25 Million to Boost Capital for SMEs in Southeast Asia
Funding Societies, a Singapore-based fintech platform, has raised $25 million to support small and medium-sized enterprises (SMEs) in Southeast Asia. This significant funding will enable the company to continue its mission of providing financing solutions to underserved businesses across the region.
In an exclusive interview with TechCrunch, Funding Societies’ CEO Teo shared that digital lending is expected to rise in Southeast Asia, making up about 65% of the total revenue. He emphasized that his company’s strategy of focusing on SMEs will continue to be the key driver for growth and sustainability.
The fintech platform has successfully consolidated its position as a market leader since receiving $144 million from SoftBank Vision Fund 2 in February 2022. Teo attributed this success to the company’s focus on addressing the financial needs of SMEs, which are critical to the regional economy.
In an effort to further support these businesses, Funding Societies has made strategic acquisitions and investments, including the purchase of Sequoia-backed payments fintech CardUp in December 2022. This acquisition alone almost tripled the company’s revenue while maintaining its headcount almost flat.
The latest funding will be utilized to expand Funding Societies’ reach and increase capital availability for SMEs across Southeast Asia. The funds will also be used to continue investing in technology and talent, as well as exploring new markets.
Funding Societies has already demonstrated a positive impact on the region’s economy, according to a social and economic impact report co-authored with the Asian Development Bank (ADB) in 2020. The report highlights that Funding Societies-backed MSMEs contributed $3.6 billion to GDP and created approximately 350,000 new jobs.
The company’s commitment to supporting SMEs has been instrumental in addressing regional economic challenges, such as job creation and GDP growth.
Source: techcrunch.com
