Funding Societies' New Investment to Bolster Southeast Asian SMEs
In an impressive stride towards empowering small and medium-sized enterprises (SMEs) in Southeast Asia, Funding Societies has secured a significant $25 million in funding. This capital will enable the fintech startup to enhance its lending capabilities across the region. For SMEs, which contribute nearly 50% to the GDP of Southeast Asia, access to adequate funding remains a challenge as traditional banks often view them as risky borrowers.
Vision Behind Funding Societies: An Initiative Rooted in Experience
Founded in 2015 by Kelvin Teo and Reynold Wijaya, Funding Societies emerged from the founders' own experiences and educational journey at Harvard Business School. They recognized the underserved financial needs of SMEs in their region and set out to make impactful changes. With over $4 billion already loaned to about 100,000 businesses in countries like Singapore, Indonesia, Malaysia, Thailand, and Vietnam, the company has established itself as a formidable player in the market.
Expanding Reach and Services with New Funding
The recent investment, primarily from the Cool Japan Fund, marks the first venture by this investor in Southeast Asian fintech. This addition raises the total funds for Funding Societies to approximately $250 million. The capital will not only expand financial services to existing and prospective Japanese businesses in the region but also enhance technological advancements in lending processes. Investing in AI will streamline and digitize loan applications, thereby enabling faster and more efficient services.
Making a Difference with Technological Advancements
With the new infusion of resources, Funding Societies aims to bolster its technological infrastructure, emphasizing AI integration. This will help optimize its business operations and expand its payments business, which was launched in 2022. Such advancements are set to make the lending process for SMEs more seamless and accessible, fostering growth and sustainability in Southeast Asia's vibrant economic landscape.
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