Fintech platform Funding Societies raises US$7.5 million in debt funding

DIGITAL finance platform Funding Societies has raised US$7.5 million in debt funding from development financial institution Norfund, it said on Thursday (Nov 2).

Norfund operates a Norwegian government-owned investment fund for developing countries.

Funding Societies will use the funds to offer working capital, trade finance and micro loans to small and medium enterprises (SMEs) in Singapore, Indonesia, Thailand, Malaysia and Vietnam. Their target customers range from sole proprietors to small listed companies.

Kelvin Teo, co-founder and group chief executive officer of Funding Societies, said that the funding will “satisfy the growth capital needs of more underserved SMEs in South-east Asia”.

The platform provides US$1 billion of business financing yearly to SMEs. It said it has reached more than US$3.2 billion in business financing, serving around 100,000 SMEs across the five South-east Asian markets.

Fay Chetnakarnkul, Norfund’s regional director of Asia, said: “We are pleased to be able to support Funding Societies as the company expands its reach and increases financial inclusion further, enabling more businesses to grow and create much needed jobs in the region.”