Southeast Asia’s Digital Lending Market Sees Major Boost with Funding Societies’ $25M Capital Raise

**’We Want to Pay It Forward’: Funding Societies Raises $25M to Boost Capital for SMEs in Southeast Asia**

Funding Societies, a digital financial services platform in Southeast Asia, has announced a significant milestone – raising $25 million to bolster its efforts in providing essential capital to small and medium-sized enterprises (SMEs) across the region. This substantial injection of funds is poised to accelerate the company’s growth, further solidifying its position as a market leader.

According to industry reports, digital lending is expected to rise significantly in Southeast Asia, accounting for approximately 65% of the total revenue. This trend underscores the pressing need for innovative solutions that bridge the funding gap between SMEs and traditional financial institutions.

Funding Societies’ CEO, Teo, emphasized the importance of this development, stating that it will enable the company to continue its mission of empowering entrepreneurs and businesses in Southeast Asia. “We want to pay it forward by supporting the growth of SMEs, which are critical drivers of economic prosperity,” he said.

In recent times, the startup has experienced significant consolidation within the credit fintech space in Southeast Asia, driven largely by a challenging funding climate. This shift has led many companies to explore strategic partnerships or M&A opportunities to ensure their sustainability.

Funding Societies’ latest $144 million Series C+ round led by SoftBank Vision Fund 2 in February 2022 underscores its commitment to this vision. In December 2022, the company made its first acquisition of Sequoia-backed payments fintech CardUp, a move that almost tripled its revenue while keeping headcount relatively flat.

The funding will also be utilized to invest in three companies, including a fintech firm and another specializing in POS software.

Source: techcrunch.com