Funding Societies signs $50 million credit facility with HSBC to drive SME growth in Southeast Asia


SINGAPORE, August 22, 2022 /PRNewswire/ — Finance Companies, South East Asia largest digital financing platform for small and medium-sized enterprises (SMEs), today announced the signing of a $50 million credit facility* with HSBC Singapore to continue to expand the company’s reach to underserved SMEs in the region.

[Left] Regina Lee, Head of Commercial Banking, HSBC Singapore; [Right] Kelvin Teo, Co-Founder and Group CEO, Funding Societies | Modalku

Commercial loans in Asia Pacific is expected to grow at a CAGR of 16.5%, generating revenue of more than US$7 trillion by 2028 – which represents approximately 25% of the size of the world market for US$27.4 trillion. Generally speaking, the digital experience of SMEs is still particularly underserved and not at the same pace of digital transformation as retail lending. Finance companies have a loan disbursement history of more than US$2.6 billion through more than 5.1 million transactions in the region. With this new facility, the fintech lender will be able to channel funds through its suite of tailored financing solutions into the SME segments across all of its five markets.

Co-founder and CEO of the group of finance companies | Modalku, Kelvin Teosaid: “We are honored to receive such a significant facility from a global bank such as HSBC. This marks a crucial milestone for us and speaks to our credit history throughout Covid-19. HSBC’s foresight, global capabilities and scalability This approach allows us to better serve the region’s underserved SME segments. We appreciate the trust placed in us by HSBC and are delighted with this signature.

SMEs represent 97% of all businesses South East Asia bringing 40% of GDP value throughout the region. In Singaporethe The Department of Statistics published in its 2021 report that 99% of companies are SMEs – which contributed 44% of nominal value added to around 212 billion Singapore dollars. The signing will allow HSBC to expand its global capabilities by tapping into underserved segments of the region. In addition, HSBC will act as structuring bank, lender, settlement and security agent providing a flexible, scalable and pan-regional financing solution to support the expansion of finance companies’ businesses in the region.

Regina LeeHead of Commercial Banking, HSBC Singaporesaid, “As a leading digital finance platform for SMEs, finance companies play an important role in helping to South East Asia new economic growth by fostering broader financial inclusion and supporting the local businesses that are the building blocks of these economies. We are excited to support finance companies as they expand their reach to serve underserved SMEs in the region. »

This announcement follows the finance companies’ most recent acquisition of regional digital payments platform CardUp (subject to regulatory approvals), as part of a series of efforts to diversify its services to beyond loans. The digital finance platform also achieved several strategic milestones, including its Series C+ capital raise of $144 million in February, its recent investment in Bank Index in Indonesiaand market entry Vietnam – its fifth market.

*Commercial loan received by FS Capital Pte Ltd

About finance companies

Finance companies | Modalku is the largest digital SME finance platform in South East Asia. It is licensed and registered in Singapore, Indonesia, Thailand, Malaysiaand operates in Vietnam. It is backed by SoftBank Vision Fund 2, SoftBank Ventures Asia, Sequoia Capital India, Alpha JWC Ventures, SMBC Bank, BRI Ventures, VNG Corporation, Rapyd Ventures, Endeavour, EDBI, SGInnovate, Qualgro, and Golden Gate Ventures, among others. The FinTech company provides financing to small and medium-sized enterprises (SMEs) and has a disbursement history of US$2.6 billion in June 2022annualizing to US$1.1 billion. He received MAS FinTech Award in 2016, Global SME Excellence Award at United Nations ITU Telecom World in 2017, KPMG Fintech100 in 2018, Brands for Good in 2019 and ASEAN Startup of the Year by Global Startup Awards in 2020. In 2021 , he was honorably named as Responsible Digital Innovator of the Year by the IFC World Bank SME Finance Forum and won the MAS Fintech Award for the second time.

About Hongkong and Shanghai Banking Corporation Limited

The Hongkong and Shanghai Banking Corporation Limited is the founding member of the HSBC group. HSBC serves customers worldwide from offices in 63 countries and territories in its geographic regions: Europe, Asia, North America, Latin Americaand Middle East and North Africa. With assets of $2.985 billion of the June 30, 2022HSBC is one of the largest banking and financial services organizations in the world.

SOURCE finance companies


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