Funding Societies raises major funding to boost MSME financing in Southeast Asia

Funding Societies raises major funding to boost MSME financing in Southeast Asia

Funding Societies, a leading Southeast Asian FinTech company, has recently secured a substantial investment from Khazanah Nasional Berhad and CGC Digital Sdn Bhd. 

This financial support aims to bolster Funding Societies’ efforts in providing accessible financing to MSMEs, a sector often overlooked by traditional financial institutions.

Funding Societies operates as a digital finance platform, focusing on underserved MSMEs across Southeast Asia. Since its establishment, it has made a profound impact, disbursing over $3.5bn in business financing through five million transactions. The company has a significant presence in Malaysia, Singapore, Indonesia, Thailand, and Vietnam, addressing critical funding gaps and supporting over 100,000 businesses.

The new investment will enable Funding Societies to expand its reach within Malaysia, particularly beyond major urban areas like Kuala Lumpur, Selangor, Penang, and Johor. By 2025, the company aims to support over 25,000 MSMEs across Malaysia, enhancing their access to financing and contributing to job creation and income development.

Additionally, Funding Societies intends to strengthen its Islamic financing solutions in Malaysia, having already disbursed over RM100 million in Shariah-compliant financing since its introduction earlier this year. This initiative is part of a broader strategy to cater to diverse financing needs within the region.

Khazanah’s investment is aligned with its Dana Impak mandate, which focuses on advancing Malaysia through strategic investments. This collaboration with CGC Digital is intended to promote socioeconomic growth, particularly in rural and semi-urban communities. CGC Digital’s involvement brings innovative digital guarantee products and a unique credit scoring model, further enhancing the financial ecosystem for MSMEs.

Dato’ Amirul Feisal Wan Zahir, managing director of Khazanah, emphasised the significance of this investment, stating, “The investment in Funding Societies reflects our commitment to fostering financial inclusion and bridging the funding gap, especially within the MSME community.

“Being the backbone of Malaysia’s economy and contributing nearly half of the nation’s employment, MSMEs are both critical and critically underserved. Hence, this investment aligns with our mission of contributing to nation-building and socioeconomic growth.”

Kelvin Teo, Co-founder and Group CEO of Funding Societies, expressed gratitude for the support from Khazanah and CGC Digital. He noted, “We are honoured to receive support from Khazanah and CGC Digital, who share our conviction to impact and MSMEs. This is a testament to our commitment towards extending credit to reach more underserved MSMEs. We would also progressively offer MSMEs more cash flow management solutions to power their growth.”

Keep up with all the latest FinTech news here.

Copyright © 2023 FinTech Global

Enjoying the stories?

Subscribe to our daily FinTech newsletter and get the latest industry news & research


The following investor(s) were tagged in this article.