Funding Societies | Modalku, recognised as the most expansive unified SME digital finance platform in Southeast Asia, has bagged $27m.
The firm has garnered a debt of $27m. This impressive round was spearheaded by the Asia-centric private credit financier, AlteriQ Global. Alongside them, multi-family office Aument Capital Partners (ACP) and the eco-conscious fund, Orange Bloom, also played a significant role.
Serving as the core pillar of Southeast Asian economies, SMEs have been pivotal. Specifically in the ASEAN belt, an overwhelming 70 million ventures are identified as MSMEs (micro, small, and medium enterprises). They contribute a mammoth 99% of total business establishments, pitching in with 44.8% to the regional GDP. Yet, a gaping challenge stares at them – accessibility to finance. The United Nations Capital Development Fund sheds light on this, highlighting a $300bn gap.
With this fresh influx of funds, Funding Societies plans to amplify its tailored financing solutions. Their primary objective is to rally behind the under-represented SME sectors scattered across its operational territories.
To ensure the sustenance of business cash flows, Funding Societies is on an unyielding quest to broaden the accessibility spectrum of its offerings. Furthermore, in their unwavering dedication to equitably serving these ventures, their horizon has broadened to more than mere lending.
They are now addressing a universal pain point for SMEs: cash flow management. Their commitment to this cause is evident, having processed over 5 million transactions, extending financing exceeding $3.2bn, and having catered to nearly 100,000 SMEs across the Southeast Asian terrain.
Funding Societies | Modalku Co-Founder and Group CEO Kelvin Teo remarked, “We’re delighted to receive this debt funding from such a diverse group of institutional investors, all of whom believe in our mission and growth story of serving Southeast Asia’s SMEs. Amidst uncertain macroeconomic conditions, we continue to deepen our financing propositions across our five markets for more underserved SMEs, alongside existing and new partners.”
Similarly, Managing Partner of AlteriQ Global, Zhi Yong Heng, commented, “We found great synergy and potential with what Funding Societies has accomplished through the years with its diverse digital financing solutions, the quality of their team and the many SMEs they have served. As one of the leading players in the digital financing space, this ties in very well with how AlteriQ Global strives to foster and provide a fully-integrated financing ecosystem. We look forward to supporting and collaborating with Funding Societies as they continue to grow in the region.”
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