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Title: ‘We want to pay it forward’: Funding Societies raises $25M to boost capital for SMEs in Southeast Asia
Funding Societies, a digital financial services company in Southeast Asia, has secured $25 million to increase its offerings and support small and medium-sized enterprises (SMEs) across the region. This significant investment comes as the company aims to expand its capabilities and create more opportunities for these businesses.
According to an e-Conomy SEA Report 2024, digital financial services in Southeast Asia are expected to grow rapidly, with digital lending leading the way, making up about 65% of the total revenue. Funding Societies is well-positioned to take advantage of this trend and capitalize on the increasing demand for innovative financing solutions.
In a recent interview, Teo, Funding Societies’ founder, highlighted that the startup expects more consolidation among fintechs focusing on credit in Southeast Asia. This consolidation is driven by the fact that many companies are reaching the end of their funding runway and unable to raise additional capital due to the challenging fundraising environment in the region.
Funding Societies has made significant moves recently to strengthen its position in the market. In December 2022, the company acquired Sequoia-backed payments fintech CardUp, which nearly tripled its revenue while maintaining a flat headcount. Additionally, Funding Societies has invested in three other companies, including a fintech firm and a startup specializing in POS software.
One of the key highlights of Funding Societies’ vision is to have a positive impact on society by supporting SMEs and their employees. A social and economic impact report conducted with the Asian Development Bank (ADB) found that Funding Societies-backed MSMEs contributed $3.6 billion to GDP and created approximately 350,000 new jobs. The startup’s services have also helped SMEs increase their revenue by 13% through rapid disbursement and a simple application process.
In conclusion, Funding Societies’ significant investment will allow it to expand its offerings and further support SMEs across Southeast Asia.
Source: techcrunch.com
