Dutch-based crowdfunding platform Lendahand has deployed €5m into Singapore-based Funding Societies to invest in underserved SMEs.
The funds will be used to support SMEs predominantly in Indonesia, but also Singapore and Malaysia.
Funding Societies is a digital financing platform that offers short-term loans to SMEs which are crowdfunded by individual and institutional investors. It is backed by Sequoia India, Samsung and Softbank Asia Corp.
Lendahand offers crowdfunding services and has the aim of providing investment capital to businesses in emerging markets. By working with Funding Societies, the company sees a long-term partner with like-minded goals and values.
Lendahand CEO Koen The said, “Funding Societies is a great example of the power technology can have on helping bridge this funding gap. With their mission of uplifting societies in Southeast Asia by providing access to capital for SMEs, we feel their business model aligns with our own goals. We hope to work with more innovative FinTech’s to advance our mission of fighting poverty in these underserved emerging markets.”
The Covid-19 pandemic has heavily impacted the global economy and caused a lot of challenges for SMEs in emerging markets.
Koen The added, “Since the beginning of the pandemic we keep seeing governments in the West taking measures beneficial only for their own citizens. This directive of the Dutch government makes it clear that we have to look at other solutions. Emerging markets aren’t lacking in willing and innovative entrepreneurs eager to roll up their sleeves, take steps forward on their own, and thus, once again, get the economy going. What is lacking, however, are financial injections to support these SMEs.”
Late last year, Funding Societies secured an investment from Samsung Venture Investment Corporation. The investment was part of a strategic investment between the two and introduces prospective partnerships and collaboration.
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