Tag: MSME

Singapore – Following the company’s commitment to enhancing financial accessibility to MSMEs, Khazanah Nasional Berhad, in collaboration with CGC Digital, has recently announced a strategic investment in Funding Societies, a small and medium enterprise digital finance platform in Southeast Asia.

The investment targets expansion in areas beyond Kuala Lumpur, Selangor, Penang, and Johor, with plans to serve more than 25, 000 MSMEs across Malaysia by the end of 2025. This move intends to provide better financial access, spur growth, and facilitate scalability, contributing to job creation and income development for the individuals employed by these businesses.

This initiative is also accompanied by the company’s goal to extend the reach of Islamic financing solutions introduced in Malaysia earlier this year.

Khazanah’s investment is in line with its Dana Impak mandate, a key component of its Advancing Malaysia strategy. This investment aligns with the government’s vision of improving the performance of MSMEs by providing increased access to financing, fostering opportunities, and driving socioeconomic growth in rural, semi-urban, and underserved communities with limited access to financial services.

The collaboration with CGC Digital, on the other hand, is aimed at influencing the Malaysian MSME ecosystem, given Khazanah’s simultaneous investment in funding societies.

In particular, this collaboration encompasses digital guarantee products on the platform, extending sustained support to Malaysian micro and small businesses in securing long-term financing. With a digital-first approach and leveraged alternative data, the digital guarantee product aims to provide micro and small businesses with more extensive and cost-effective access to financing.

Speaking about this feat, Dato’ Amirul Feisal Wan Zahir, managing director at Khazanah, said, “The investment in funding societies reflects our commitment to fostering financial inclusion and bridging the funding gap, especially within the MSME community. Being the backbone of Malaysia’s economy and contributing nearly half of the nation’s employment, MSMEs are both critical and critically underserved. Hence, this investment aligns with our mission of contributing to nation-building and socioeconomic growth.”.

Yushida Husin, CEO at CGC Digital, also expressed her delight with the recent collaboration, stating, “CGC Digital sees this investment as a strategic win for Malaysian MSMEs. We share Dana Impak’s vision and believe that, by working together with Khazanah, CGC Digital can advance financial inclusion among underserved and unserved MSMEs in the digital ecosystem.

“CGC Digital seeks to push the envelope by developing a suite of innovative digital guarantee products for thin-file MSMEs that can be offered together with Funding Societies’ financing products to increase their chance of obtaining much-needed financing,” she added.

Speaking about the strategic investment, on the other hand, Datuk Mohd Zamree Mohd Ishak, board member at CGC Digital and president and CEO of CGC Digital’s parent company, Credit Guarantee Corporation Malaysia Berhad, shared his sentiment as well, saying, “By joining forces with Khazanah and Funding Societies, this strategic investment by CGC Digital shows CGC Group’s commitment to taking Malaysian MSMEs, especially thin-file MSMEs, to the next level.”

Kelvin Teo, co-founder and group CEO at Funding Societies, said, “We are honoured to receive support from Khazanah and CGC Digital, who share our conviction to impact MSMEs. This is a testament to our commitment towards extending credit to reach more underserved MSMEs. We would also progressively offer MSMEs more cash flow management solutions to power their growth.”

“This is where funding societies seek to step in by serving the region’s MSMEs’ cash management challenges and needs with our extensive reach and broad range of short-term financing solutions,” Teo concluded.

Singapore – ADA, Axiata Group’s digital group, joins with Meta to launch a business messaging hackathon, improving WhatsApp’s use as a route of communication between individuals and organisations across the APAC region.

ADA and Meta will launch the ‘ADA Business Messaging Hackathon 2023: Building the Future of Conversations’, with the goal of providing 1 million APAC enterprises with said solutions. Over 10,000 digital talents from Singapore, Malaysia, and Indonesia, including students, developers, and entrepreneurs, will collaborate to create chatbot solutions on the WhatsApp Business Platform.

Paul Kim, VP of Telco Ecosystem Partnerships APAC at Meta, said, “With increasing number of customers communicating with a business or service account on WhatsApp in APAC, business messaging has become one of the core growth pillars of Meta and we are delighted to cement our partnership with ADA, which will also include the integration of ADA’s best-in-class CPaaS (Communications Platform as a Service) solutions – ADA’s Business Messaging Platform & APIs with WhatsApp Business Platform. This will enable businesses to seamlessly communicate with their customers and offer more personalized experiences”.

Meanwhile, Srinivas Gattamneni, CEO of ADA, said, “As seamless Customer Experience (CX) and stronger customer relationships continue to become the focus of businesses, ADA is proud to strengthen our strategic relationship with Meta by contributing to the growth of this ecosystem. This hackathon will be anchored on the WhatsApp Business Platform for our clients and businesses across APAC.”

West Java, Indonesia – Indonesia-based e-commerce platform Tokopedia, Unilever Indonesia, and the West Java Provincial Government have partnered to hold a Digital Advanced Women’s Class entitled ‘MSMEs Women Empowered and Forward Digital: Inspiration for Women Dare to Bring Change’, which was attended by hundreds of local MSMEs in West Java, a province in Indonesia, and surrounding areas.

The event is a continuation of the signing of the cooperation between Tokopedia and Unilever Indonesia in the series of B20 Indonesia Women in Business Action Council programmes dedicated to empowering women entrepreneurs. Present as a result of the B20 Indonesia presidency, this program also presents the One Global Women Empowerment (OGWE) platform initiative that focuses on expanding access to information, business assistance in the digital era, and technical entrepreneurship training as a preparation to face the challenges ahead.

Emmiryzan, head of the public policy and regional government division of Tokopedia, said, “This is the fourth time that Tokopedia has held a KPMD after being successfully held in Bali and Surabaya. We hope that through KPMD, Tokopedia can help improve the competitiveness of local MSME players, especially female MSMEs so that they are able to become hosts in their own country and become the main choice of Indonesian people.”

Meanwhile, Marini Fabiano, Unilever Indonesia Foundation’s diversity and inclusion lead, noted that in line with the ‘The Unilever Compass’ strategy, Unilever is committed to continuing to contribute to creating a more just and inclusive society which is manifested through their efforts to develop entrepreneurial skills and provide access to mentoring and mentoring for women and MSMEs. 

“Through collaboration with Tokopedia, we hope that women’s MSMEs, especially in West Java, can continue to grow and be competitive,” said Fabiano.

Atalia Praratya, the chairperson of Sekoper Cinta, commented, “We welcome the collaboration of Tokopedia and Unilever Indonesia in presenting KPMD activities in the West Java region. This is also in line with one of our programmes at Sekoper Cinta which provides training in opening up business opportunities so that women can be independent and contribute to the family economy. We hope that through this activity there will be more and more qualified MSMEs from West Java.”

Manila, Philippines – The Department of Information and Communications Technology (DICT) government agency is eyeing an online shopping platform dedicated to the country’s micro small and medium enterprises (MSMEs), the Philippine News Agency (PNA) first reported.

According to DICT Secretary Ivan John Uy, said platform would provide a complete e-commerce “ecosystem” from sourcing of raw materials, global digital marketing, as well as an e-payment system.

The platform, which will be operated in collaboration with the Department of Trade and Industry (DTI), would be similar to other online shopping platforms such as Shopee and Alibaba.

“This will be integrated — they won’t have to worry about how would they transform their business from a brick-and-mortar into an e-commerce-enabled business. This will bring them up, make them more, and will become a major player. Because MSMEs have always been a major player in our economy,” Uy said.

He also added that the government would design the platform and the MSMEs would simply need to ‘register and be onboard’.

“They haven’t been able to shift their business into the e-commerce platform because of challenges. We’re here, and we’ll solve those challenges for them and make it easier for them to do,” Uy said.

Singapore – Green Link Digital Bank (GLDB) commences banking business in Singapore, to serve Micro-Small-Medium-Enterprises (MSMEs) with banking and financial services through their supply chain financing and innovative, easy-to-use technological solutions. Supply chain financing and innovative, easy-to-use technology will be used by GLDB to provide accessible commercial banking, as well as supply chain offerings for underserved MSMEs.

By expanding their service area and developing new supply chain finance solutions, GLDB aims to better meet the needs of a wide range of businesses, especially those in high-growth industries in the digital economy.

Dr. Geng Jing, chairman of GLDB, said, “The commencement of Green Link Digital Bank’s operations in Singapore symbolises a major milestone. It drives to strengthen the core pillars in digitalisation, technological empowerment and green finance. We aspire to be one of the key contributors towards digital economy advancements in Singapore and hope to play a significant role in cultivating an open digital finance ecosystem in Singapore.

GLDB will enhance their focus on serving the core needs of MSMEs and technology enterprises, improve on service quality, and pave the way for them to become a leader in wholesale banking.

Song Qun, vice chairman of GLD, shared, “We hope to bring cutting-edge financial technology and experience in serving MSMEs in Singapore and are committed to being the leading supply chain finance technology solution provider. We will continue to explore the application of advanced technologies such as AI, blockchain, cloud computing, and big data (ABCD) in supply chain finance, incorporate environmental, social, and governance (ESG) factors into our product development and growth strategies, and create a digital banking industry benchmark, contribute to the Singapore market, and realise sustainable growth.”

Meanwhile, Goh Soon Hong, executive director and CEO of GLDB, commented, “We are excited to begin working with our customers in Singapore. We look forward to becoming their most trusted partner by growing with them, serving them with our digital solutions, connecting them with the right partners, and enabling them to embrace greater supply chain sustainability. We look forward to creating strong, long-lasting relationships with business and work with other supply chain financing platforms in Singapore.”

Singapore – ANEXT Bank, a digital wholesale bank in Singapore under Ant Group, has announced its soft launch. This follows its receipt of the Monetary Authority of Singapore’s (MAS) approval to commence business on 2 June 2022. 

The new digital bank will focus on providing digital financial services to local and regional MSMEs, especially those engaging in cross-border operations for growth and global expansion.

Toh Su Mei, ANEXT Bank’s CEO, believes that it’s time to offer the next generation of financial services that are accessible and effortless for growing businesses, and financial services have to evolve and be where SMEs are doing their businesses digitally.

“We are well-positioned to live up to this vision, leveraging Ant Group’s deep bench of technologies and know-how, along with our customer-obsessed local team dedicated to serving the SME community. Adopting an open and collaborative approach, we believe in joining hands with industry partners and the public sector to provide SMEs with financial services that are simpler, safer and more rewarding,” she said

Meanwhile, Sopnendu Mohanty, chief fintech officer at MAS, said that this marks yet another milestone in Singapore’s digital bank development journey, a strategic effort to ensure the banking sector remains progressive, globally competitive and vibrant. 

“MAS expects the digital banks to thrive and synergise with our dynamic financial institutions and raise the bar in delivering quality financial services and uplift Singapore’s financial sector to better support the growth of SMEs in Singapore, the region and in emerging markets,” added Mohanty.

ANEXT Bank has also signed a two-year MoU with Proxtera – the entity supported by MAS, the Infocomm Media Development Authority (IMDA) and private sector entities, to transform and enable holistic cross-border trade amongst SMEs and businesses by making marketplaces efficient and discoverable globally, with embedded financing, fulfilment services, and SME empowerment.

The MoU will see both organisations jointly create and establish an open framework for all participating financial institutions as they provide financing and risk mitigation support for SMEs and platforms in global trades. ANEXT Bank will also be Proxtera’s first participating digital wholesale bank in Singapore to lead the way in providing financing solutions to the buyers and sellers on Proxtera’s network.

Saurav Bhattacharyya, Proxtera’s CEO, shared that their commitment is to simplify global trade for SMEs and uplift them with the power of networks, leveraging modern technology to improve discoverability, accessibility, availability, and affordability of innovative digital services. 

“This mission is closely aligned with ANEXT Bank’s focus to serve SMEs engaging in cross-border operations. Together with ANEXT Bank’s digital-born identity and digital-first capabilities and services, I’m confident that we can make trade easier, more seamless and efficient for SMEs,” said Bhattacharyya.

As part of its soft launch, ANEXT Bank has provided a preview of the ANEXT Business Account, a dual-currency deposit account with proprietary security measures including three-factor authentication verification, as well as features, such as remote onboarding and daily interest. 

The bank is also calling on SMEs to share their thoughts on what they hope to see in financial services – it recognises in order to bring about what’s next in financial services, it starts with the needs of SMEs. Entries, as well as registrations of interest to open an account, are available from today via its website www.ANEXT.com.sg. The ANEXT Business Account will be made available to the general SME community in the third quarter of 2022.

Bangalore, India – Global AI-powered credit decisioning platform provider Scienaptic AI has announced that Inditrade Capital, India’s digitally enabled lending, insurance and rural marketing enterprise is live on its platform. Through bureau, banking, and financial data, the Scienaptic platform can reliably estimate a customer’s risk level, as well as Scienaptic’s industry-tested expert scorecards. By using this solution, the Micro, Small, and Medium-Sized Enterprise (MSME) sector in India will be able to grow more quickly and more effectively.

Inditrade Capital leverages technology to enable progress for the under-served and marginalised. With an aim to create a sustainable social impact at the grass-root level of India’s enterprise ecosystem, Inditrade has lent over INR28B in cumulative loans to over 400,000 customers. Inditrade offers a Phygital channel to ensure last-mile connectivity. By enabling Scienaptic’s AI-powered credit underwriting platform and industry-tested expert scorecards, they will be able to provide better and faster credit access to a wider cross-section of the society and empower the 63 million MSMEs in India that often have limited access to financial assistance.

Sudip Bandyopadhyay, group chairman of Inditrade Group of Companies, shared, “When we see an individual’s entrepreneurial dreams actualizing, it is extremely satisfying. A young woman pressed by financial shortcomings and personal losses, getting back on her feet and supporting her family with the help of our MSME loan is extremely uplifting.” 

Bandyopadhyay added, “Scienaptic’s credit decisioning solution is now helping us make the most of our customer’s information to understand our customers’ risk better. As a result, we will be able to provide our customers with the right amount of credit, while ensuring our portfolio losses are minimised.”

Meanwhile, Joydip Gupta, APAC head of Scienaptic, commented, “It is an exciting time for FinTech in India. As an industry leader, Inditrade Capital provides the perfect platform for Indian citizens and MSMEs across urban and rural areas to achieve their entrepreneurial aspirations. Our credit underwriting platform along with our AI-based scorecards will enable Inditrade to extend its loans to more individuals and businesses who are often ignored under the traditional financial system, while balancing growth and profitability.”

Manila, Philippines – GrowSari, the local B2B e-commerce platform that serves sari-sari stores or local mom-and-pop stores in the Philippines, has raised US$77.5m as part of its Series C funding, bringing its total funding to around US$110m. This newly secured fund will be used in accelerating GrowSari’s national expansion. 

According to Growsari, from a base of 1,000 sari-sari stores in three cities back in 2018, the platform has grown to service more than 100,000 stores in over 220 municipalities across Luzon. In addition, it has expanded rapidly and further into other MSMEs/non-sari-sari store formats nationwide over the last 12 months.

Reymund ‘ER’ Rollan, GrowSari’s CEO and co-founder, believes that not only will this funding allow them to fuel their growth, but this will also help them bring top global quality talent in operations, technology, and data science into the startup ecosystem of the Philippines.

“We are strategic in choosing investors, and we have deepened our partnership with those who can support this next phase of growth, on the core as well as financial services. We remain open to partnering with all other local and international companies as we transform this MSME space,” said Rollan.

Meanwhile, Siddhartha Kongara, GrowSari’s CTO and co-founder, shared that they have already launched in the Visayas, with Iloilo as the first city, and will launch in Mindanao soon, and they also have the largest B2B fulfilment network and will have 50-plus fulfilment centres nationwide.

“We are also fast progressing on our vision to use the GrowSari technology stack to help other companies in their logistics and e-commerce journeys. We already have more than 10 traditional companies that are leveraging the platforms to improve their business operations,” said Kongara.

This round’s funding was joined by investors International Finance Corporation (IFC), KKR, which led the Series C round, and Pavilion Capital of the Temasek Group, along with almost all existing investors. GrowSari is also in talks for the next round of funding, as there is a significant demand from marquee funds.

Stephanie von Friedeburg, IFC’s senior vice president of operations, said, “Our investment will enable Growsari to expand digital adoption and financial services for MSMEs, which is critical to keep them competitive, and for a resilient and inclusive recovery.”

Manila, Philippines – The Department of Trade of Industry (DTI) in the Philippines has partnered with cross-border trade platform 1Export to introduce locally-made products from MSMEs to the global market. This is done through DTI’s ‘Go Lokal!’ program that targets local MSMEs to make their products more accessible to new markets.

The partnership also includes the utilisation of 1Export’s ‘Kalocal’, a platform where you can order export-ready Filipino products at wholesale prices. Said platform aims to help Filipino communities abroad who want to start their own business through importing and reselling products directly from local producers and manufacturers by offering competitive pricing for a wide variety of products – from heritage to novelty, from premium to popular and fast-moving brands.

For this year, DTI and 1Export will be launching the ‘’Go Lokal Surprise Box’ — a curated gift box containing Filipino products that will be made available, initially in the USA and Canada. Every product highlights a unique story of being proudly and passionately made by MSMEs in the Philippines.

“This promotional initiative will help MSMEs transition to cross-border trade as it provides the opportunity for the world to discover Filipino culture through artisanal handicrafts and delectable treats. This 2022, try Go Lokal products and join us in our journey to empower our local MSMEs,” DTI said in a press statement.

Since its inception in 2016, the ‘Go Lokal!’ program has partnered with 24 retailers, rolled out 154 stores nationwide, and assisted 859 MSMEs of which 385 have become regular suppliers of partner retailers. To date, the program has generated sales amounting to PHP 428m.

Manila, Philippines – B2B tech platform Zilingo which offers commerce solutions to businesses and retailers, has launched Zilingo Digitize in the Philippines. The new solution is a cloud-based SaaS to help brands & distributors digitize their distribution needs. 

Zilingo Digitize adds to the line of product offerings of the tech platform which includes, among others, Zilingo Trade, which aims to bring a seamless process in the bulk-buying and -selling of ready-made (RMG) and made-to-order (MTO) goods as well as Zilingo Factory, an MES software for the garment industry that helps factories increase efficiency and reduce waste.

Shiela Mauricio, the platform’s country manager in the Philippines, said that Zilingo is reimagining the entire supply chain and is aggregating all parties within the same platform by offering services and software that can help businesses do better. 

“This has been the brand’s focus since day one,” Mauricio said.

Meanwhile, Dhruv Kapoor, the co-founder & CTPO of Zilingo, said that the company remains committed to bringing new tools, technology, and innovation that will unleash the entrepreneurial spirit in the Philippines, boost exports from the country and build greater supply chain transparency to reduce cost and wastage.

“With the internet and technology becoming an integral part of our lives, we see a massive opportunity to empower MSMEs across the country and Zilingo is dedicated to being a catalyst for progress and innovation,” said Kapoor. 

The platform further comments that with its direct access to raw material suppliers, manufacturers, and brands, it is able to offer MSMEs the means to achieve product quality, quantity, and availability, and better pricing models.