Digital finance platform Funding Societies raised $27 M Debt funding from AlteriQ Global, others
The largest unified small and medium enterprises (SME) digital finance platform in Southeast Asia, Funding Societies | Modalku, announced that it had successfully raised $27 million in debt.
According to a statement from Funding Societies, the funding was provided by the Asia-focused private credit financier AlteriQ Global, as well as the sustainability-focused fund Orange Bloom and multi-family office Aument Capital Partners (ACP).
According to the statement, the funds will be used to support the underserved small and medium-sized enterprise (SME) segments in the five markets in which Funding Societies is active.
The statement asserts that SMEs are the foundation of Southeast Asian economies.
More than 70 million businesses in the ASEAN region fall under the category of micro, small, and medium enterprises (MSMEs), making up 99 percent of all establishments and accounting for 44.8% of the region’s gross domestic product (GDP).
Despite claims that consumer access to credit has increased, it stated that 39 million MSMEs in the region still face financing challenges.
Citing the UN Capital Development Fund, it was stated that this gap could reach $300 billion.
Funding Societies, according to the statement, support SMEs in maintaining their cash flow while consistently expanding the range of access to their services through this funding.
“We are 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,” Co-Founder and Group Chief Executive Officer of Funding Societies | Modalku, Kelvin Teo said.
