US-based lending platform Funding Societies secures a US$50 million credit facility from HSBC.
Funding Societies, a leading fintech company in Southeast Asia, has announced a significant milestone in its journey towards broader financial inclusion. HSBC Singapore has provided a US$50 million credit facility to Funding Societies, marking a strategic partnership that will extend HSBC's global capabilities by tapping into underserved segments across the region.
This credit facility is a testament to Funding Societies' credit track record, particularly during the Covid-19 pandemic. The company, also known as Modalku in Indonesia, has successfully raised US$144 million in its Series C+ equity, demonstrating its resilience and growth potential.
Kelvin Teo, Co-founder and Group CEO of Funding Societies, expressed his gratitude for the US$50 million credit facility. He stated, "We are grateful to HSBC for providing such a large credit line to Funding Societies. This support will further equip us to better serve underserved SME segments in the region."
The funds will be used to channel financing solutions across SME segments in all of Funding Societies' five markets: Singapore, Indonesia, Malaysia, Thailand, and now, Vietnam, where the company has recently entered.
This partnership will enable HSBC to extend its reach and services, while Funding Societies continues to play an important role in contributing to Southeast Asia's new economic growth. Regina Lee, Head of Commercial Banking at HSBC Singapore, expressed her excitement about supporting Funding Societies as they expand their reach.
In addition to this, Funding Societies has made an investment into Bank Index in Indonesia and has recently acquired regional digital payments platform CardUp, subject to regulatory approvals. These moves are part of Funding Societies' efforts to diversify its services beyond lending.
HSBC will act as the structuring bank, lender, facility, and security agent for this financing solution. This partnership will not only boost Funding Societies' growth but also strengthen HSBC's presence in the region.
Atome Financial, another fintech player in the region, has also recently announced receiving a US$100 million debt facility from HSBC. This highlights HSBC's commitment to supporting the growth of the fintech sector in Southeast Asia.
Funding Societies, with a track record of loan disbursement of over US$2.6 billion through more than 5.1 million transactions across the region, is poised to continue driving financial inclusion and serving the underserved SME segments in the region.
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