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Funding Societies secures third credit facility with HSBC to extend access to MSMEs in Southeast Asia

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Funding Societies secures third credit facility with HSBC to extend access to MSMEs in Southeast Asia
Business

Business

Funding Societies secures third credit facility with HSBC to extend access to MSMEs in Southeast Asia

2024-11-05 11:30 Last Updated At:11:45

Part of HSBC's ASEAN Growth Fund, an accumulative commitment of over US$100 million to Funding Societies since its partnership established in 2022

SINGAPORE, Nov. 5, 2024 /PRNewswire/ -- Funding Societies | Modalku (Funding Societies), the largest unified digital finance platform for micro, small and medium enterprises (MSMEs) in Southeast Asia today announced signing the third credit facility* with HSBC under its ASEAN Growth Fund. The overall transaction, an accumulative commitment of over US$100 million, also includes the two annual credit facilities extended to Funding Societies, reaffirms HSBC's continued support for MSMEs through the platform since 2022.

This transaction, which is amongst HSBC's largest asset-backed secured facilities extended to digital SME lenders in Southeast Asia, will further deepen and extend Funding Societies' reach to providing credit access to underserved MSME segments in the region.

While the Asia-Pacific (APAC) region has grown its middle-class and gained tremendous traction in terms of increasing access to formal banking services and digitalising its commercial environment, the region still has a US$2.5 trillion credit access gap, making up over half of the global shortfall in small business financing[1]. To put into perspective, up to 99.9% of enterprises are MSMEs contributing to 35% to 69% of each country's gross domestic product (GDP)[2].

Co-founder and Group CEO of Funding Societies, Kelvin Teo, said, "The continued support from a global bank such as HSBC is a testament to its commitment to support the development of digital platform businesses such as ours and MSMEs as we ride through a two-decade high interest rates impacting the global economy. This enables us to further explore scalable debt financing for growth and profitability, and bolster financial inclusion for the underbanked and underserved SMEs in the region."

As part of its ASEAN Growth Fund strategy, this transaction underlines a scalable solution to allow and enable digital lenders like Funding Societies to raise additional equity capital and debt financing through different channels. Furthermore, HSBC will act as the structuring bank, lender, account bank, FX counterparty, facility and security agent in providing a scalable and pan-regional financing solution to support Funding Societies' business expansion in the region.

Harish Venkatesan, Head of Corporates and Business Banking, HSBC Singapore, said, "As an early-starter and a leading MSME digital financing player in ASEAN, we are pleased to provide our third credit facility for Funding Societies, cumulatively in excess of US$100 million. This will enable us to continue supporting its efforts to provide financing support to micro, small and medium enterprises which will contribute to the building blocks of societies in the ASEAN region. We look forward to continuing support for Funding Societies as they grow their business and for the underlying MSMEs in the region through the HSBC ASEAN Growth Fund."

The US$1 billion HSBC ASEAN Growth Fund was launched in March 2024 to enable Singapore-based digital platform businesses supporting e-commerce in the region to achieve economies of scale across multiple international markets, grow their asset portfolios, and advance along the corporate lifecycle. Together with the New Economy and Venture Debt Fund, HSBC Singapore offers a comprehensive suite of financing solutions for new economy businesses across different stages of growth[3].

This announcement comes at the heels of Funding Societies' most recent strategic investments from Maybank in September.

Since its inception in 2015, Funding Societies has disbursed over US$4 billion in business financing, positively impacting more than 100,000 businesses across Singapore, Indonesia, Malaysia, Thailand, and Vietnam, as well as processed an annualised US$1.4 billion in payments GTV (gross transaction value) since its entry into payments in late 2022.

[1] SME Finance Forum - MSME Finance Gap

[2] United Nations Development Programme - Building MSME Resilience in Southeast Asia

[3] HSBC scales up support for Singapore's new economy businesses - About HSBC | HSBC Singapore

About Funding Societies | Modalku

Funding Societies | Modalku is the largest unified SME digital finance platform in Southeast Asia. It is licensed in Singapore, Indonesia, Thailand, registered in Malaysia, and operates in Vietnam. The FinTech company provides US$1 billion annually of business financing to small and medium-sized enterprises (SMEs). In recent years, it has made strategic milestones including its acquisition of regional digital payments platform CardUp and co-investment into Bank Index in Indonesia.

Funding Societies | Modalku is backed by SoftBank Vision Fund 2, Maybank, Khazanah Nasional Berhad, CGC Digital (the digital arm of the Credit Guarantee Corporation Malaysia Berhad), SBVA (previously SoftBank Ventures Asia), Peak XV Partners (previously Sequoia Capital India), Alpha JWC Ventures, SMBC Bank, BRI Ventures, VNG Corporation, Rapyd Ventures, Endeavor, EBDI, SGInnovative, Qualgro, and Golden Gate Ventures among others.

It has received accolades through the years including: Brands for Good (2019, 2023), Global SME Excellence Award, Global SME Finance Awards by IFC (2021-2023) Global Startup Awards (2020), MAS FinTech Award (2016, 2021), Singapore's Fastest-Growing Companies 2024 (a list of 100 companies compiled by The Straits Times and Statista), High-Growth Companies in Asia-Pacific 2024 (a list of 500 companies compiled by the Financial Times and Statista) .

For more information, please visit: www.fundingsocieties.com

About The Hongkong and Shanghai Banking Corporation Limited

The Hongkong and Shanghai Banking Corporation Limited is the founding member of the HSBC Group. HSBC serves customers worldwide from offices in 60 countries and territories. With assets of US$2,975bn as of 30 June 2024, HSBC is one of the world's largest banking and financial services organisations.

** The press release content is from PR Newswire. Bastille Post is not involved in its creation. **

Funding Societies secures third credit facility with HSBC to extend access to MSMEs in Southeast Asia

Funding Societies secures third credit facility with HSBC to extend access to MSMEs in Southeast Asia

BANGKOK, Nov. 5, 2024 /PRNewswire/ -- For the first time, the Asia Pacific Chemsex Symposium (APCS) has moved from Taipei to Bangkok, marking a new chapter in its mission to expand the understanding of pleasures and harms related to chemsex in the Asia-Pacific context, and see the possibilities to optimize chemsex care. This sixth gathering of APCS, hosted by the Institute for HIV Research and Innovation (IHRI, Thailand), Service Workers in Group (SWING, Thailand), the University of Malaya (Malaysia), and HIV Education and Research Taiwan (HEArT, Taiwan), has attracted more than 300 participants and features the theme "Pleasures, Policies, and Possibilities." The symposium has become an essential forum for engaging diverse voices and discussing the unique complexities of chemsex in the region.

Since its inception in 2019, APCS has brought together community members, healthcare professionals, CSOs/NGOs, advocates, researchers, policymakers, donors and technical  agencies, providing a safe, culturally sensitive space to discuss issues around HIV, mental health, and harm reduction. This year's discussions focus on advancing HIV/STI prevention, improving mental health, and promoting evidence-based, rights affirming chemsex harm reduction interventions and policies tailored to the needs of key populations.

"A core goal of APCS is to empower and facilitate community leaders and stakeholders to collaborate and share resources across borders," said Dr. Nittaya Phanuphak, Convenor of APCS 2024 Organizing Committee. "We aim to spotlight initiatives that respect the diverse  social dynamics and policy environments across the region to minimize harm and foster impactful change."

A major highlight of this year's symposium is the launch of the Gilead HIV Community Scholarship Program, an initiative that recognizes the vital work of community-based organizations (CBOs) in chemsex-related harm reduction, HIV prevention, and community care. This program supports and amplifies the voices of those who are closest to the communities affected by chemsex and HIV.

The HIV Community Scholars, supported by Gilead Sciences, are invited to attend APCS 2024 to present their innovative projects and exchange learnings and ideas with like-minded peers and experts. Key projects presented include:

"Community-based organizations are in the frontline of addressing HIV prevention and harm reduction," said Alain Chan, Executive Director, Medical Affairs of Gilead Patient Solutions. "We're proud to see the launch of the Gilead HIV Community Scholars Program, honoring our community partners through supporting their travel to participate in the APCS. We hope they can leverage this opportunity to learn and exchange and be inspired by each other."

The APCS 2024 symposium will continue through November 7 at the Benjasiri Ballroom 1-3, 5th Floor, Novotel Sukhumvit 20, with discussions on the latest research, policy initiatives, and community-driven solutions for chemsex-related health challenges in the Asia-Pacific region.

For media inquiries, please contact:
Phat Parkpien, Consultant, APCO
pparkpien@apcoworldwide.com
Tel: 081 858 6376

About Asia Pacific Chemsex Symposium (APCS)
APCS is an annual event dedicated to fostering meaningful dialogues, sharing valuable insights, and encouraging collaboration to tackle the complex, locally relevant challenges of Chemsex. Our focus includes key populations, HIV/STI prevention, mental health, and harm reduction. Join us in this important endeavor to make a difference. Our collaborators include Institute for HIV Research and Innovation (IHRI, Thailand), Service Workers in Group (SWING, Thailand), the University of Malaya (Malaysia), and HIV Education and Research Taiwan (HEArT, Taiwan).

About Gilead HIV Community Scholarship Program
The Gilead HIV Community Scholars Program aims to empower community-based organizations (CBOs) dedicated to HIV prevention and harm reduction. By providing scholarships to select scholars, the program highlights the vital role these organizations play in addressing the complexities of HIV care, particularly among key populations. Scholars will have the opportunity to attend the Asia-Pacific Chemsex Symposium, where they can share their innovative work, engage with experts, and collaborate with peers committed to advancing HIV care and support in their communities.

** The press release content is from PR Newswire. Bastille Post is not involved in its creation. **

6th Asia Pacific Chemsex Symposium (APCS) 2024 Opens in Bangkok with Over 300 Participants and Launch of the Gilead HIV Community Scholarship Program

6th Asia Pacific Chemsex Symposium (APCS) 2024 Opens in Bangkok with Over 300 Participants and Launch of the Gilead HIV Community Scholarship Program

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