Singapore – Small and medium enterprise (SME) digital financing platform Funding Societies has signed a US$50m credit facility with HSBC Singapore to drive SME growth in the Southeast Asia region, especially underserved SMEs.
Through this new facility, the fintech lender will be able to channel the funds via its range of tailored financing solutions across SME segments across all its five markets.
Kelvin Teo, co-founder and group CEO of Funding Societies and Modalku, said, “We’re honoured to receive such a sizable facility from a global bank such as HSBC. This marks a critical milestone for us and is a testament to our credit track record through COVID-19.”
He added, “HSBC’s foresight, global capabilities and scalable approach further equips us to better satisfy the underserved SME segments in the region. We appreciate HSBC’s confidence in us and are excited about this signing.”
The signing will also enable HSBC to extend its global capabilities by tapping on the underserved segments across the region. Furthermore, HSBC will act as the structuring bank, lender, facility and security agent in providing a flexible, scalable and pan-regional financing solution to support Funding Societies’ business expansion in the region.
Meanwhile, Regina Lee, Head of Commercial Banking, HSBC Singapore, said, “As a leading SME digital financing platform, Funding Societies is playing an important role in contributing to Southeast Asia’s new economic growth by driving broader financial inclusion and supporting homegrown companies which are the building blocks of these economies. We are thrilled to support Funding Societies as they expand their reach to serving underserved SMEs in the region.”
This announcement comes at the heels of Funding Societies’ most recent acquisition of regional digital payments platform CardUp, subject to regulatory approvals, as part of a series of efforts to diversify its services beyond lending.