Singapore – Southeast Asia’s SME digital financing platform, Funding Societies, has announced that it has raised US$18m in debt for funding led by a trio syndicate of financial institutions, including lending company Helicap Investments, the newly launched Social Impact Debt Fund, and a Japanese financial services group. Helicap Securities acted as the sole mandated lead arranger on the secured credit facility.
Helicap provides private debt investments to a wide network of accredited investors, including family offices, high net worth individuals, impact funds, and institutional investors. In line with its support of sustainable lending, FinTech joined the round through its investments arm, Helicap Investments, after the deal was arranged by its securities arm, Helicap Securities.
Together with the funding received from European impact investors such as Triodos Investment Management for Indonesian business loans, Funding Societies is on track to raising US$120m in institutional debt for funding the growth needs of MSMEs in SEA. This funding round also expands the platform’s institutional lender base, which is secured after passing financial and risk due to diligence conducted by the lenders.
Moreover, Funding Societies will be placing the funds for lending to deserving MSMEs, propelling its mission of enabling financial inclusion in the region.
Kelvin Teo, Funding Societies | Modalku’s co-founder and group CEO, shared that the pandemic was an important test of resilience, and we are glad to have navigated it successfully, with a proven AI-led credit model.
“We are honored for the faith of Helicap, the Social Impact Debt Fund, and the Japanese financial services group, enabling us to further ride on the growth of SME digital financing. We believe this is a start of a long-term relationship and continuous evolution of Funding Societies,” said Teo.
David Z. Wang, the co-founder and CEO of Helicap, the parent company of Helicap Investments and Helicap Securities, commented they are delighted to have assisted Funding Societies in its goal of providing access to capital for underserved MSMEs.
“Helicap was founded with the aim of breaking down traditional barriers for those who need capital and those who can provide it. This transaction demonstrates the ongoing institutional and individual appetite for private debt investment, and Helicap is well-positioned to provide access to quality opportunities through our relationships with leading issuers such as Funding Societies,” said Wang.
Funding Societies said that the syndicated facility of US$18m is expected to increase further with interest from investors across Asia and Europe.