Funding Societies, Southeast Asia’s largest digital finance platform for micro, small and medium enterprises (MSMEs), announced a new milestone today with the signing of its third credit facility under the HSBC ASEAN Growth Fund.
This latest transaction, an accumulation of over US$100m in commitments from HSBC, highlights the bank’s ongoing support since 2022 and marks one of HSBC’s largest asset-backed secured facilities provided to digital SME lenders in the region.
The financial infusion is set to deepen and expand Funding Societies’ capabilities in delivering crucial credit services to underserved MSME sectors across Southeast Asia.
The region, despite its growing middle class and increasing access to formal banking services, still faces a significant US$2.5 trillion credit access gap. MSMEs represent up to 99.9% of enterprises and contribute substantially to national GDPs, underscoring the critical nature of this funding.
Funding Societies operates as a unified platform that provides tailored financial solutions to MSMEs, aiming to bridge the persistent funding gap and foster economic inclusion. By leveraging technology and regional partnerships, it enhances lending efficiencies and reaches financially underserved businesses.
This transaction is part of HSBC’s broader ASEAN Growth Fund strategy, which aims to provide scalable and regional financing solutions.
Kelvin Teo, co-founder and group CEO of Funding Societies, said, “The continued support from a global bank such as HSBC is a testament to its commitment to support the development of digital platform businesses such as ours and MSMEs as we ride through a two-decade high interest rates impacting the global economy. This enables us to further explore scalable debt financing for growth and profitability, and bolster financial inclusion for the underbanked and underserved SMEs in the region.”
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