The largest digital finance platform for SMEs in Southeast Asia, Funding Societies has officially launched in Vietnam’s market. This event marks the platform’s fifth market expansion. This fintech platform is currently operating in Singapore, Malaysia, Thailand markets, and also known as Modalku in Indonesia. The platform has disbursed more than $2 billion in over 5 million lending transactions. Funding Societies ran a trial in Vietnam in December 2021, disbursing more than $20 million, aiming to increase this number to more than $90 million in 2022, and $1.3 billion in 2025.
Kelvin Teo and Reynold Wijaya, Co-Founders of Funding Societies
“Vietnam will become one of the biggest markets for Funding Societies with a lot of potential,” said Kelvin Teo, Co-Founder and General Director of Funding Societies. The platform will cooperate with technology platforms, banking partners, support medium and long-term plans. This orientation is similar to how the company recently invested in Bank Index in Indonesia. “Based on the success of Funding Societies in other markets, we will improve the turnaround time for capital automation and more efficiently support Vietnamese SME underwriting,” said Ryan Galloway, CEO of Funding Societies in Vietnam.
About Funding Societies
Funding Societies is a trusted online loan company for SME financing via AI credit model. This digital platform offers traditional term loans, along with other financing options such as bill financing. “Since its inception in 2015, Funding Societies has been dedicated to improving the Southeast Asian community. Vietnam is always on that route. This is a turning point when we officially adapt to the new normal, build a solid team with a veteran representative in the fintech field in Vietnam, Ryan Galloway, and secure the investment from VNG.” Kelvin shared.
In early 2022, VNG invested $22.5 million in Funding Societies in a Series C+ funding round. This fundraising totally valued $294 million, including $144 million of equity and $150 million of loans. This company is also backed by SoftBank Vision Fund 2, SoftBank Ventures Asia, Sequoia Capital, Alpha JWC Ventures, SMBC Bank, Samsung Ventures, BRI Ventures, Endeavor, SGInnovate, Qualgro, Golden Gate Ventures, etc.
Plans in Vietnam
Funding Societies is committed to supporting SMEs in various fields, such as education, retail, technology, FMCG, etc. in Vietnam through trade finance, inventory, accounts receivable and accounts payable in and around the Ho Chi Minh City and Hanoi area. The company will also apply digital funding in local currency nationwide in the second half of 2022. VNG will help them quickly adapt to the domestic market, providing tailored solutions for each Vietnamese enterprise ‘s unique needs.
Source of information is Dealstreet Asia.