A $250 million asset-backed securitization (ABS) facility has been closed by FundPark, a fintech company based in Hong Kong. HSBC will serve as the senior lender for up to $200 million of the total.
FundPark and its partners said in a statement on Tuesday that they are able to provide up to $750 million in funding to eCommerce entrepreneurs as a result of their most recent financing round.
This is the first public-private partnership of its kind between the city’s top innovation and technology (I&T) ecosystem and a major international bank, according to a statement made possible by the strategic alliance between HSBC and The Hong Kong Science and Technology Parks Corporation (HKSTP).
In addition, the statement stated that HSBC is dedicated to helping high-growth businesses and entrepreneurs in the technology sector seize chances for both domestic and global expansion.
FundPark said that as a result of this transaction, it will be able to assist more small-to-medium-sized (SME) eCommerce business owners in the Greater Bay Area and, on a larger scale, in Greater China.
The facility’s $3 billion HSBC New Economy Fund is also mentioned. This fund offers customized debt financing options to high-growth, innovative businesses and startups in mainland China and Hong Kong to help them expand locally or globally.
“Our purpose is to fund the self-belief of entrepreneurs by making working capital work for them, and in doing so positively contribute to communities and the economy,” said Anson Suen, Chief Executive Officer and Co-founder of FundPark.
“Throughout this process, HSBC has shown that it shares a similar goal to make finance efficient and accessible to support small businesses, the digital entrepreneurs behind them and contribute to the growth of the new economy particularly in the Greater Bay Area,
“We look forward to our collaboration in connecting finance and technology to deliver real impact,” he added.
FundPark uses data from partners and online sales platforms, along with its proprietary risk management platform and artificial intelligence (AI) technology, to assist eCommerce entrepreneurs in obtaining working capital loans.
By doing this, it is tackling the estimated $30 trillion global liquidity gap by expanding financial inclusion.
Two-thirds of the total deployment has taken place in the last two years alone. Since 2016, the company has given over $2.5 billion in funding to over 17,000 shops that trade with over 19 markets, including Greater China, Southeast Asia, and the United States.
