Singapore – Funding Societies, a digital finance platform, has secured a US$25 million investment from Cool Japan Fund (CJF), Japan’s sovereign wealth fund. The investment will help the company support SMEs across Southeast Asia (SEA), particularly in Singapore, Indonesia, Malaysia, Thailand, and Vietnam.
To enhance its business in financing SMEs, Funding Societies will funnel the investment to help businesses receive their payments faster. It will also use artificial intelligence to streamline lending origination processes.
Additionally, Funding Societies and CJF are forging a partnership to financially support Japanese companies in SEA. Aimed at boosting commercial relations for Japanese SMEs across the region and expanding their businesses, it will consequently promote Japanese lifestyle and culture.
The investment marks CJF’s first funding into a fintech company in SEA.
“We are excited to be backing Funding Societies through this investment. Their track record of supporting SMEs in Southeast Asia well places them to help Japanese companies overcome challenges when entering new overseas markets – particularly in this region,” Kenichi Kawasaki, president and chief executive officer of Cool Japan Fund, said.
“With the shift of interest from Japanese firms steering towards Southeast Asia, we believe our partnership with Funding Societies through this investment will grow the overseas demand of Japanese products and services, in turn, benefitting Japan’s economy as well as the local SMEs doing business with Japanese companies,” Kawasaki added.
Kelvin Teo, co-founder and group chief executive officer of Funding Societies | Modalku, said, “We’re honored for the commitment from Cool Japan to collaborate and support Japanese companies expanding overseas. Many businesses we serve in Southeast Asia are Japanese firms, suppliers and/ or customers to them. Together with CJF, we intend to further strengthen these ties.”
