Funding Societies, Southeast Asia’s largest SME digital finance platform, has secured a strategic equity investment from Gobi Partners, an Asia-focused venture capital firm. This investment highlights confidence in Funding Societies’ business model and its commitment to bridging the SME credit gap amidst challenging fintech market conditions.
The investment arrives at a time when caution towards fintech firms is prevalent, reinforcing Funding Societies’ financial stability and growth in SME financing and payments since 2022. Kelvin Teo, Co-founder and Group CEO of Funding Societies, expressed gratitude for the investment, stating, “This partnership is a testament to our strong fundamentals and commitment to financial inclusion.”
Gobi Partners’ support will enable Funding Societies to enhance its technology-driven approach, leveraging AI and automation to streamline lending processes. Thomas G. Tsao, Co-founder and Chairperson of Gobi Partners, remarked, “Funding Societies has consistently demonstrated strong execution and resilience in SME financing.”
Despite economic uncertainties, Funding Societies remains dedicated to empowering SMEs with tailored digital financial products. The company has disbursed over $4 billion (£3.3 billion) in business financing to approximately 100,000 SMEs and processed an annualised payments gross transactions value of over $1.4 billion (£1.15 billion). The partnership with Gobi Partners will further expand its reach, supporting SMEs that drive local economies.
With backing from investors like Cool Japan Fund and Maybank, and a credit facility from HSBC’s ASEAN Growth Fund, Funding Societies is poised to maintain its growth trajectory whilst ensuring responsible lending practices.
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