Funding Societies, which claims to be Southeast Asia’s largest small and medium enterprises (SME) digital financing platform, has secured a $50m credit facility.
The credit facility was supplied by HSBC Singapore and will help Funding Societies expand its reach to underserved SMEs in the region.
With the funds, Funding Societies plans to bolster its financing solutions across the region.
Additionally, HSBC will act as a structuring bank, lender, facility and security agent in providing flexible, scalable and pan-regional financing solutions to support Funding Societies’ business expansion in the region.
It claims commercial lending in Asia Pacific is projected to grow at a CAGR of 16.5%, generating a revenue of over $7trn by 2028, making up around 25% of the global market size of $27.4trn.
Funding Societies has a track record of loan disbursement of over $2.6bn through more than 5.1 million transactions across the region.
The FinTech company is registered in Singapore, Indonesia, Thailand, Malaysia and operates in Vietnam. It offers micro loans, term loans, supply chain financing, invoice financing, revolving credit facility, property-backed secured financing and more.
Funding Societies co-founder and group CEO Kelvin Teo said, “We’re honoured to receive such a sizeable facility from a global bank such as HSBC. This marks a critical milestone for us and is a testament to our credit track record through Covid-19. HSBC’s foresight, global capabilities and scalable approach further equips us to better satisfy the underserved SME segments in the region. We appreciate HSBC’s confidence in us and are excited about this signing.”
This credit facility comes just months after Funding Societies raised $144m in its Series C+ round. The round was led by SoftBank Vision Fund 2, with commitments also coming from VNG Corporation, Rapyd Ventures, EDBI, Indies Capital, K3 Ventures and Ascend Vietnam Ventures
It also recently acquired CardUp as it looks to diversify its offering beyond SME digital financing.
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